Buying & Selling Real Estate Discussion

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Zhao Zhao
  • Chantilly, VA
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can we resell an REO property which was affordable housing before

Zhao Zhao
  • Chantilly, VA
Posted Aug 18 2019, 13:56

Hi,

I'm a real estate investor and recently encounter a bizarre situation. I tried to search online for answers but was not able to find one.

The property locates at fairfax county, Virginia. It is an REO property owned by Freddie Mac and was onsale. I win the auction and is ready to move to purchase agreement. However, I found that it is a affordable housing unit before it was acquired by the bank. Affordable housing unit has less property tax, was sold to first time low income buyers at a lower than market price, and has restrictions on appraisal, etc. So my question is, since it is acquired by the bank and then sold on the auction market to me, do those restrictions still apply? The first time home buyer get an affordable property with some kind of subsidy from the government so it make sense for them to sell it with restrictions later. But as an investor, I did not get any subsidy when purchasing it, is there any restrictions on me when selling it in the future?

It is confused to me and hope anyone can shed some lights here.

Appreciate!

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