Fannie Mae Anti-Flip Enforcement and Monitoring
5 Replies
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Chris Pappas from Fort Howard, Maryland
posted over 3 years agoDoes anyone know how seriously Fannie Mae enforces anti-flip clauses and how it discovers violations of anti-flipping clauses?
Gerald Harris Investor from Atlanta, Georgia
replied over 3 years agoI remember when i first started practicing real estate in CA. There were no issues, what these institutions try to do is stop deep pocket investors from gobbling up all the deals. The priority, or so they want, is the primary home owner. What i later found is that if you don't abide by these rules would be in big trouble
Wayne Brooks Real Estate Professional from West Palm Beach, Florida
replied over 3 years agoSimple to monitor. The deed transfers are recorded, and easily viewable, forever. Simple solution though...you can transfer immediately for less than the 120% cap (perhaps to your other entity?). the new deed holder has NO deed restrictions, and can immediately sell for whatever.
Chris Pappas from Fort Howard, Maryland
replied over 3 years ago@Wayne Brooks Thanks for the information.
My question is not whether Fannie Mae can discover the transfer easily but whether it seriously enforces anti-flipping clauses.
Moreover, my understanding is that the anti-flipping clause is contractual and does not affect the deed.
Wayne Brooks Real Estate Professional from West Palm Beach, Florida
replied over 3 years agoIt is generally a deed restriction, contained in the deed, if the closing agent doesn't screw up and leave it out. I a assume enforcement.
Chris Pappas from Fort Howard, Maryland
replied over 3 years agoJust doubled checked. Looks like the deed is restricted. Thanks!
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