New FHA rules for "flipping properties"

With new rules and regulations on FHA loans it always is a challenge staying on top of all of the new information. I recently had a closing that almost didn't go through because FHA said that the seller had not had the property in her hands long enough for the borrowers loan to go through. She had the property under an LLC (that she owned) and then transferred the property to herself when she disbanded the LLC. Even though she was the same owner FHA still insisted that she had to have the property (in her name only) for a minimum of three months. Ultimately, the closing went through however, there were some hefty hurdles that we all had to jump. Now FHA says that it will make an exception to their rule when property becomes foreclosed on. Up until this point, property that was being foreclosed on was having to sit vacant because new buyers couldn't qualify for the loan unless the sellers had it in their name for a minimum of three months. This in turn has been causing the property to attract homeless people, graffiti and has been hurting surrounding property values too! Hopefully the rule alteration will help iron some of these problems out.