FANNIE MAE IS NOW SUPPRESSING THE HOUSING MARKET FURTHER WHILE LOSING TONS OF MONEY ON REO'S. THEY WANT A SIX MONTH ANTI-FLIPPING CLAUSE IN THE DEED FOR PURCHASERS OF FORECLOSED PROPERTIES.
READ ON...
Fannie Mae IS Requiring agents marketing it's REO properties to include text in sales contracts providing that certain anti-flip language will be included in DEEDS. The text is generally consistent:
"Grantee herein shall be prohibited from conveying captioned property to a bona fide purchaser for value for a sale prices of greater than ($______=120% of sales price) for a period of one hundered and eighty (180) days from the date of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the amount greater than ($_____=120% of sales price) for a period of one hundred and eighty (180) days from the date of this deed. These restrictions shall run with the land and are not personal to grantee. "
HOw's that for discouraging investors? It will serve to reserve the property for 1st timers, and move-up's, but will probably cause inventory to be further bloated.
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