As of this day 02-01-2010, the 90 day flip rule imposed by HUD has been waived for one year. The government decided to waive this rule for numerous reasons. They had found that while this rule was in place foreclosures had increased rapidly. For instance, FHA now owns numerous homes and is in need of getting them sold. Allowing the old flipping may help that.
This is a fantastic opportunity for the banks to put the distressed foreclosed homes on the market without having to wait that 90 day period enabling investors to buy at low prices then repair a home to make it habitable, and not have to wait another 90 days to offer it out there for sale to a Buyer.