UPDATE! With the massive number of foreclosures over the past couple of years, HUD discovered that many lenders exempted from the 90-day waiting period transfer titles to foreclosed properties to subsidiaries or vendors for the purpose of selling the properties, and those subsidiaries and vendors haven't been covered by the exemption.

To help speed re-sales of foreclosed properties and stabilize the neighborhoods in which they're located, HUD on June 9, 2008 adopted a temporary one-year rule (159k) that exempts from the 90-day waiting period all properties foreclosed on by mortgagees, their subsidiaries, and the vendors they hire to sell them, provided they're purchased by owner-occupants. Unless extended by HUD, this temporary rule will expire on June 9, 2009.