Using a contract for deed to sell while under 90 day deed restriction?

Question

Need some advice.....i just made a cash purchase of a fannie mae reo....now can i sell it on a contract for deed if i am still within the 90 day fannie mae deed restriction period? Just wondering if I could insert some verbiage into my contract for deed that would allow me to get around this 90 requirement e.g. purchaser agrees that deed will not be transferred from seller for 90 days. My atty told me he wont close it for me this way. thoughts?

Daniel G. · Answer

Why not just do Lease Option for 90 days and day 91 sell at the price you want?  If the fail, you evict, under contract keeping their down and sell at at your price...

I am not very familiar with contract for deed, but if I were the consumer, why would I pay you a large amount of money to own a home when you own the deed?  For me that wouldnt make sense and if a lender looks at that it probably wouldnt make sense either.

Like I said I am not familiar with contract for deed, but I am sure you can word it in the contract somehow to where deed is not transferred until 91 days of signed contract.  I would check with a re attorney just to make sure.

Joe S. · Answer

Thanks.  I want to sell the house for more than 120% on a owner finance deal called a contract for deed which means I hold the deed until they pay me in full.  I was hoping to do this and include some language in the contract for deed that prevents the transfer of the deed for 90 days.  I guess my bottom line question is; can I sell the property if I hold the deed for 90 days?

Daniel G. · Answer

HI Joe, are you trying to sell your property above the 120% FNMA rule?  This would be the only restriction you will have to sell within your 90 days.

Every FNMA I have flipped in a 24 hour period has been within the 120% rule of my purchase price.

Hope this helps!