Belleville, NJ · Member since 2015 · 88 posts · 33 votes
Does anyone know in NJ, that if a property is brought from the MLS, that it can not be resold for 90 days. I heard that is called a seasoning period, but is that still active or did it end? I am working on a wholesale deal right now but no contract has been signed yet, I just want to make sure than I can get it under contract and have my buyer double close on it immediately.
Specialist · Las Cruces, NM · Member since 2009 · 557 posts · 71 votes
10y
It's usually not a problem, but there are times when it's just not allowed. For example, some REO and Fannie Mae properties have a clause that won't allow a resale of over 10% of your purchase price for 90 days. It's usually in the addendums you sign so just keep an eye out.
A good escrow agent will keep you aware of all of this.
Real Estate Broker · Orange, CT · Member since 2013 · 951 posts · 218 votes
10y
He's referring to a Buyer's mortgage guideline that restricts loaning on properties that are being resold quickly. This used to be a big problem, I think for FHA mostly.
However, I believe this guideline is temporarily on hold, or can be over-ridden with proof of repairs and/or 2 appraisals.
Real Estate Investor · Edinburg, TX · Member since 2016 · 76 posts · 13 votes
10y
Good question never thought of it till I read this post, I also (to keep all options open) analyze MLS listings or any other listing by an agency. So I will definitely keep in mind.
Transactional Funder · Neptune, NJ · Member since 2011 · 187 posts · 86 votes
10y
@Account ClosedBottom line is, yes, it can be done as long as there are no restrictions on either end of the double close (run this by attorney or title to verify).
@Account ClosedBottom line is, yes, it can be done as long as there are no restrictions on either end of the double close (run this by attorney or title to verify).
It is possible to drive 60MPH in a school zone, but school zones usually have restrictions, all title insurance companies follow ALTA standardized settlement procedures, so therefore, we have a restriction. The first closing cannot be from funds provided by the next buyer. The first buyer failed to pay consideration to obtain good title to convey two seconds later, because he was broke. Use transitional funding, use a seller financed note on the first close......but then it's not the old double closing either. :)
Agreed. I was referring to resale restrictions actually. But yes, as a funder, I definitely advocate using transactional funding to close the first transaction.
Centennial, CO · Member since 2009 · 758 posts · 251 votes
10y
@Account Closed,
You may end up with a holding period requirement if you are buying from some banks or FNMA, typically 30 days. The "seasoning requirement" does not apply directly to you but refers to mortgage requirements imposed on your end-buyer, if they are using a mortgage. FHA suspended their 90 day title seasoning for several years but now again imposes it. Conventional mortgage lenders have always imposed it. It means that if a property has recently changed hands they will not lend to your end buyer until you have been in title for at least 90 days. When attempting quick flips cash-buyers should be your primary goal.