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Return of the House Flipper

Calculated Risk reports on an FHA (Federal Housing Authority) rule change that will make it easier for house flippers to do business.  The new rules will remove the restrictions that have been in place to prevent resale of an FHA guaranteed property within 90 days.

But in some areas the increase in investment activity is already taking place with all cash transactions.   Robert Selna reports in the San Fransisco Chronicle that cash deals are impacting foreclosure auctions in the Bay area.  Investors with cash bought up 20% of properties in those auctions in December, 2009.  A year earlier, only 3.2% avoided buy-in by the banks.  Over the same time interval, the number of investor purchases at auction in the entire state of California have more than tripled to more than 2500 in December, 2009.

Disclosure: No stocks mentioned.