REO's

[Ernesto Flores]

If I was to buy an REO cash, is there a seasoning period that I would have to wait before I could sell the property? I mainly want to wholesale the property but in case I cant find a buyer I dont want to lose my earnest money deposit so was looking at my options.

[Will Barnard]

Originally posted by J Scott:

Some banks (such as Fannie Mae) will impose re-sale restrictions. In the case of Fannie Mae, you can't resell for more than 20% above the purchase price for 90 days.

Note that this quote by J was posted back in 2009 and FM since edited this restriction. Any reasle within 90 days and above 20% of purchase price can be resold, but 2 appraisals are required and they may require other info like repair lists, receipts, etc.

Several banks impose a deed restriction, especially on short sales such as Wells fargo, B of A, etc. They can have 30, 45, or 60 day deed restrictions. If you are a rehab flipper, this is no problem as you will hold for that long anyways during your rehab. if you intend to wholesale, then you would need to get around this by using an entity or land trust.