Bruce McBarnette Comments on FHA waiver of Anti Flip Rules

WASHINGTON, Jan. 29, 2011 /PRNewswire-USNewswire/ -- Bruce McBarnette, Esq., president of Summit Connection LLC, recently talked about the Federal Housing Administration's suspension of its anti flip rules for the next year.  Anti-flipping rules prevent foreclosed homes from being sold within 90 days of being purchased.  

These rules help prevent fraudulent flips.  Such flips often involve a seller using a fabricated appraisal to sell a house for a much higher price than what the seller paid for it a few weeks prior.

Bruce McBarnette said, "Anti-flip rules are useful to protect buyers in an appreciating market where people are more likely to be deceived by a grossly inflated appraisal.  In this market, however, with prices still falling in many areas, people are not as likely to be fooled by fraudulent appraisals."

Bruce McBarnette also said, "Anti-flip rules make it more difficult for investors to buy and renovate homes.  This puts a drag on the real estate market at a time when there is a glut of foreclosure homes that have to be bought and fixed up, if we want a rapid economic recovery.  There were over 2.8 million foreclosure filings last year, which is an incredibly high number."

"The Obama administration is doing the right thing to suspend these rules for at least a year," Bruce McBarnette concluded.

Bruce McBarnette, who is also the world champion masters high jumper for his age group, is an attorney and the founder of Summit Connection LLC.  Summit Connection LLC is a real estate investment firm based in Sterling, Virginia.  Summit Connection LLC and its investors buy properties primarily on the East Coast of the United States.  

SOURCE Summit Connection LLC