BiggerPockets

I also tried to look this up on Homepath.com and using Google. Could not find an answer but although not 100% sure I believe the investor must hold the property for 90 days?

The one (Fannie Mae) we are buying says we can't sell it for over a certain amount before 90 days. I wonder why they do that? This is what our addendum states:

Grantee herein shall be prohibited from conveying captioned property to a bonafide purchaser for value for a sales price of greater than $XX,000 for a period of 3 months from the date of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the principal amount of greater than $XX,000 for a period of 3 months from the date of this deed. This restriction shall run with the land and are not personal to the grantee. This restriction shall terminate immediately upon conveyance at any foreclosure sale related to a mortgage or deed of trust.

There is legislation soon to be presented to the government "all-knowing" powers on the stupidity of these rulings. Some of them are being looked at by attorneys as well as a class action (I haven't verified this as truth, just heard it from a few investors) as it appears to be a violation of certain rights.

There is a great guy by the name of Bruce Norris (in CA) www.thenorrisgroup.com who is actively attemtpting to get the legislation changed to do away with seasoning issues all together. Sign all those petitions that are out there and/or make your voice heard to his group!

We all know that in a down market, what kick starts the economy is the willingness investors have to purchase properties. When will THEY realize this?

The "new" agency being established has control over fannie and freddie which makes all their regulations the same as FHA also under their control.

This would mean a 90 day seasoning rule. But there is also talk about that 90 day seasoning being put on a one year "hold" back in 2008. These regulations may not have taken affect since everything I found in the FHA guidelines actually refer back to 2007 even though they are dated 2008.

I do hope these changes are indeed comming, but even if enacted now, the real question is how long before they become implimented?

If you're an Investor, page 6 under "Deed Restrictions" to the FNMA Purchase Addem. must be completed with 120% of the purchase amount for 3 months. Property can't be sold for more than that amount for a period of 90 days.

I just met with my r.e. attorney on saturday and I am meeting with him again tomorrow afternoon and he was telling me that they have now pushed the 3 month restriction to 6 months.

I am meeting with him again to review this scenario a bit more along with other topics. I will keep you all posted if I hear anything different from these posts....

Good thing he is a partner of mine, so I dont have to pay him a dime! =)

Why would you even try to sell to an FHA buyer within your 90 day period. Just flip it to a cash buyer as a double close.

Yes, the deed restriction is 90 days, but you can still sell as long as you are 120% of your purchase price. So why not flip a few to some cash buyers!

My 2 cents! =)

I have recently purchased 3 REO properties from Fannie Mae that came with a deed restriction. An addendum to purchase contract (tied to property not buyer) limiting the sale of the home within a 90 day period to 120% purchase price. Not that big of deal if you are in the FHA price point & market.

I have recently purchased 3 REO properties from Fannie Mae that came with a deed restriction. An addendum to purchase contract (tied to property not buyer) limiting the sale of the home within a 90 day period to 120% purchase price. Not that big of deal if you are in the FHA price point & market.

The deed restriction was included in my addendum to the contract on every property. I was trying to copy in the paragraph from the addendum but seems I cannot.