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Paul Kiesel
Paul Kiesel
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Bush Suspends Property-Flipping Rule

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President Bush temporarily suspended a five-year-old rule today that had required “home-flippers” to wait 90 days before reselling a home. The suspension will take place for one year.

The move was made in large part to help speed up and increase the purchases of foreclosed properties. There is an excess volume of foreclosed homes on the housing market and these homes have been affecting other homes’ (not foreclosed on) value and appeal.

It might not be the most preferred plan, but at this point in time, the move should help stimulate sales of foreclosed property, thus, bringing some needed relief to the troubled housing market.

The FHA commissioner, Brian Montgomery, stated earlier today that “a glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community’s recovery. [This suspension] will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes,” (CNNMoney.com, 6/13/08).

According to the foreclosure listing company RealtyTrac Inc., across the nation, 261,255 homes received at least one foreclosure-related filing in May, up 48% from the same month last year, and up 7% from April. Again, let’s hope this move brings some of those numbers down precipitously.