Here's good news for residential real estate sales and mortgage origination professionals: A mini-boom is under way in house flipping in parts of the U.S. that had the highest foreclosure rates during the mortgage bust.
"Flip" sales of homes, made within six months of purchase, climbed 19 percent nationwide last year. The jump is far larger in metropolitan areas with high foreclosure rates: flipping soared 81 percent in Phoenix, 45 percent in California's Riverside and San Bernardino counties, and 38 percent in Las Vegas, Bloomberg News reports.
The movement could get a further boost this year now that a Federal Housing Authority rule against flipping has been waived for a year starting Feb. 1. The waiver lets FHA borrowers buy foreclosed homes from owners who held title less than 90 days.
In Phoenix, a plethora of new companies have sprung up to serve flippers. They include PostedProperties.com, InvestAZHouses.com and TopPriorityInvestments.com.
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