Fannie Doesn’t Want Real Estate Flipping

by staff on November 11, 2011

Bank-owned real estate is now affected by a Fannie Mae provision that prohibits the resale of a property for at least 3 months from the “date of the deed”.  The purpose is to discourage new owners from flipping bank-owned properties right away.    And during the 3-month waiting period, a promised sale price can’t exceed 120% of the Fannie Mae sales price although the purchaser could resell if the sales price is less than 120%.  During the 3-month time, the owner also can’t place a deed of trust on the property if it’s greater than 120% of the sales price.

For more information or for an explanation, you can contact Tucker/Griffin/Barnes attorneys in Charlottesville.

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