In the past, FHA has had a mandatory 90 Day waiting period to insure recently foreclosed properties. However, today the "Bush Administration...announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties."
This policy will be in place for one year and you can read the full News Release at http://www.hud.gov/news/release.cfm?content=pr08-082.cfm .
What does this do?
1) Allows foreclosed properties to be sold quickly through FHA.
2) "...Help(s) stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties."
3) "Ease(s) the excess supply of unsold homes in neighborhoods across the country."
Just another reason for Lenders to add FHA to their product resevoir and for Realtors to know what they can help customers purchase.
*Quoted information obtained from the following (www.HUD.gov). Please view the website for the entire story.