BiggerPockets

I've heard many folks say the Land Trust is one way around them and then some say don't use Land Trusts without knowing what you are doing because Lenders won't lend to a trust. Ask the requesting lender if they would drop the requirement if they did their own appraisal.

If they are still insisting on seasoning, one thing you can do would be to get a good RE attorney. This is where an attorney may be more valuable than a title company because they know all the legal avenues to push the deal through. I've heard of one story where the investor called his RE attorney to talk to the underwriter for the requesting lender and eventually was able to get them to drop the seasoning requirement for the deal to go through.

You have to remember the reason for the seasoning requirement which is to scrutinize deals that look like mortgage fraud (property bought at one price and sold at a higher price in a short time). Hope this helps.

This particular one was 60 days with Litton

How to get around seasoning is the question.... Well, I have a pretty successful friend who closes 6 to 10 short sales per month. Here is what he does.

Within the first few days a notice of option is recorded. I'm guessing you did that early on. So why is it still creating an issue..?? Well. it is simply because the title company doesn't understand how the transaction works. They think a deed needs to have a name transfer. Since it is an option they think it does not count on the time clock as far as "seasoning" goes.

Well, seasoning starts when the contract is recorded NOT when the option is excercised. So that may be a lack of knowledge on the title companies end. So, maybe you should deal with a title Co more in tune with how short sales work is my thought on the issue. An option contract is a binding agreement, and therefore is treated as such in regards to recording. An option is valid at recording and can cloud title at that time. The title company is looking at the option as being valid only when it is excercised on the B to C sale, and that is where the misunderstanding of seasoning requirements comes into play.

My buddy Nathan Jurewicz closes anywhere from 6 to 10 short sale transactions a month and has gotten pretty good at them. He told me himself that this misunderstanding is an occurence frequently on many peoples deals. The title company and the mortgage company should be schooled on this so they can become aware of the fact that seasoning requirements are met starting at the time of recording of the contract rather than when the option contract is excercised.

Nathan is a very well known short sale expert and he has is very knowledgeable with regard to short sales. If anyone can tell you how to get around the seasoning requirements, its definately him.

Randal, this thread wasn't worth bringing back to life.

If you read the statement by the title insurance company you'll notice they are talking about simo closes which is been known for a while that you cannot do(unless you know someone at a title company that still has a title insurer that will insure these) but I won't go into that now.

Also notice that they mention that the investor convinces the bank that the house is worth less blah blah blah blah......that's what a BPO is for duh! you dumb@ss title insurance company LOL!!!

fact of the matter is, SS investors provide a service and we profit from those services.

anyways, I don't know when that letter was put out, but the last thing I do is listen to anything that 'activerain' overrun by agents has to say.

well you're not 'wrong' just misinformed. It's not illegal, Title insurers are not insuring these transactions unless you know a guy in phoenix that knows a guy that will if the end buyer is a cash buyer but don't be going all crazy asking for that title guys name b/c the guy who mentioned wont give it to you LOL!!!

some connections are better left private :wink:

Just my opinion....

If you have a good deal and you have to hold on the property to satisfy seasoning... and you make money...it is still a good deal.

If you have a deal and you can not hold to satisfy seasoning and still make money... it is not a good deal.

This is simple. I have watched and read many threads of people "trying" to find a way around seasoning. When you really only have a few of options:
1) Don't sell to that buyer
2) Help buyer get other financing
3) Hold property to meet seasoning
4) Don't do the deal

And just a note- The guru that was mentioned above has NO magic solutions.