I just read today that FHA is lifting their ban on property flipping by investors for one year. Currently investors cannot buy and sell property within 90 days. FHA apparently wants to get mounting foreclosures off the books by opening up the market to investors who can fix up a property and resell it to a first time home buyer.
While many abuses have taken place with regards to property flipping, I feel that this is a good move. Many of the foreclosures that I have inspected are in need of significant work. The average first time home buyer client who bids on these properties just doesn't have the skills to deal with a property which has fallen into disrepair due to foreclosure.
If you allow investors to fix up the properties and make a profit doing so, the first time buyer can then buy a property which does not need major fix up work. Some argue that these are desparate measures which open the market up to the same abuses that got us into this mess.
In 2009 there were roughly 2.8 million foreclosure filings many of which are still on the market depressing home prices. Regardless an ASHI Certified Inspector should be retained to inform the buyer as to the condition of the property. If we can only get the utilities turned on.