FHA(Federal Housing Authority) typically does not insure a mortgage on a property if the seller hasowned the property for less than 90 days. However, they waived this rule in 2010, extended into 2011, and now have re-extended until the end of 2012. The hope is for this to allow these homes to sell as fast as possible and helping to stabilize prices in neighborhoods with high foreclosure activity.
Since FHA allowed this program to occur in February 2010, FHA has insured nearly 42,000 mortgages.
Article from DCS News.