BiggerPockets

If you present yourself as an investor, you can bet there will be a clause. On the otherhand, you can still portray yourself as a retail buyer and still have the 30 day clause in the approval letter.

One of the questions I will get from the negotiator is "do you plan to live in the property?" Guess what your answer should be?

Also, if your name is on the contract and your negotiating the short sale yourself, play dumb and do not act like you have done this before.

There is no way I have found to get around this clause except to avoid it alltogether. One thing I can tell you is that the 30 days clause is not boilerplate.
Good Luck!

Eric: Be very careful of the caps.

We know it was unintentional based upon the small t to begin the first sentence.

But I for one have never liked BOA or Contrywide since they began giving illegal aliens preferential treatment in their loans.

If this was truly not the case, it surely seemed like to many americans who could not get the loans given to those who could not prove the things that we had to prove.

That was the point in bringing that up for everyone as the writing was on the wall for a long time before the short sales became popular as it was true with other loans as well.

What goes around does come around.

If your a cash buyer you can answer any way you want. your referring to borrowed funds from a lender with owner occ./non owner occ. requirements.

The lenders(Many who don't read the contracts we send them )may ask the question regardless. They like to know what we are going to do with the house even though it's none of their business when we close with our own cash funds.

Eddie:
I'm aware of the various owner occ/non owner occ rules. I started this post because certain lenders don't want investors re-selling the short sales they close on within 30 days.
These particular banks are hurting the homeowners by not allowing investors to do the short sales and allowing the property to be foreclosed instead. this 30 day clause also also halts free market capitalism, and keeps the market clogged with houses and slows the housing recovery..........

Eddie
Those rules would serve a purpose if they would target only those commiting the fraud( the dry close. the pass thru funding from the end buyer to the b buyer,etc.) these rules however should not be applied to all as all are not commiting the fraud. the ethical investor who wants to re-sell short sales who closes using their own funds in a fully disclosed ,fully transparent stand alone transaction with their own escrow should be able to re-sell 5 minutes later if they choose.

As Scott has mentioned, this is on a case-by-case basis, usually at the negotiator's discretion (bank). I spoke to an escrow company that does a lot of double escrows for short sales and a really good point that was brought up is that this isn't set in stone and one thing you can do is to ask, how much will it cost to make this contingency go away. In other words, maybe we'll have to eat into our profits on BofA deals until they stop this as a common practice. But at least there is a chance to get this waived, especially since there are so many BofA/Countrywide short sales out there.

Moe

We received an approval letter today from BOA. I didn't have that clause in the letter.

James

So is this boilerplate for BOA, or no? I have two I'm working on now for investors and a clause like that would be a real killer.