Flip a short sale?

Question

Are there restrictions on selling a home within a certain amount of time after buying it as a short sale? I'm working with an investor would like to not be hold a property for long.

Thanks,

Kevin

Annette Hibbler · Answer

Kevin,

Many banks will place deed restrictions on properties typically stating you cannot resell it within a certain time frame (usually 90 days).  I'd have the owner check his closing documents first or speak with the real estate attorney.

Laura Marshall · Answer

I don't see where I can attach it. I will send it to you via email.

Laura Marshall · Answer

Hi Kevin.

It depends. You will have to read the verbiage in the short sale approval (once it has been approved)....or many times the verbiage is in the short sale affidavit. Some banks will not allow a transfer of title for 30-90 days after the short sale is complete and some also restrict the sales price - such as not more than a certain percentage of the sales price or certain dollar amount. Each lender (and underlying investor &/or insurer on the loan) have different requirements. I will try to attach part of a recent approval that I received. The sales price is $315,000. The property can not be conveyed for 30 days, and it can not be sold for more than $378,000 until 90 days from the date of the deed. Some banks don't care.