I am looking at a property to flip in Baltimore, Maryland, in the details of the listing it says:
This is an NSO Bank Approved Short Sale and available only to OWNER OCCUPANTS.
I am trying to figure out what the details of this are. I personally own my own home and have no interest in living in this while it is being fix up and sold. Can I purchase the property in another persons name?
Yes my intention is to purchase the property as an investor and resell it.
What options do I have, and why wouldn't a bank be willing to sell to anyone?
The bank is letting the property go at a loss. They are not interested in losing money to help an investor make money. At closing you will have to sign an affidavit saying you plan on living in the house a minimum of 1 year. I suggest not purchasing this property if you plan on flipping it since you would then be guilty of mortgage fraud.
Haven't seen any short sales limited to owner occupants, and don't know who/what NSO is. But, if you misrepresent yourself as an owner occupant, it will be a fraudulent transaction.
Don't do it. Don't buy a foreclosed/REO property and state that you are an owner occupant when you are an investor.
On properties with ties to the Federal government, like HUDs, VAs, Fannies, Freddies, USDA, etc, it is a Federal felony subject to 5 years in jail and a $250,000 fine.
Don't do the crime unless you can do the time... and I haven't the repo worth that time.
Thanks for the advice guys. I will be speaking with the realtor to see if the bank is willing to make any changes since it has been on the market for so long.
I definitely will not do anything illegal, as I'm not trying to go to the pokey.