Your purchaser wants to buying a flip home? Agent & Buyer beware with the new changes. Here's the scoop.....

By
Mortgage and Lending with Mortgage Resource Plus NMLS LO#138228

Everyone thinks that the 90 day wavier to the flip rule opens the door  to alot more purchases. Well Agents and Client's beware of the rules!

I had a transaction that was signed on 2/1/10. Home is cuter then can be. The buyer was willing to pay what ever it took to get the home. The were multiple offers. They got it. With the rule we had the first apprasial it came $3,000 under the agreed price. The seller said o.k will drop it.

Now it is time to pray!

Now we get the second apprasial per requested new wavier rules (2 apprasial if the sales price is more than 20% of the original cost) and it came in $6,000 under the first apprasial.

What changed was one of the pending sales closed in between both apprasials time frames. Remember the lender also orders an inspection of the property. The inspection went great thank goodness.

But realize that even with the agreement of the sales price in the beginning, we still have to get though 2 apprasials to justify current market value and an inspection of the property before we can get it closed.

But the ultimate outcome is the happy client! They purchased the home they were wishing for.

We just have to get all parties to hang in there during the process.

 

 

 

 

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Rainer
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Mike Wilbur
Guild Mortgage Company and Oregon Homes For Heroes - Salem, OR

Just a great reminder that it is not open season for flippers.  Thanks!

Mar 05, 2010 04:04 AM #1
Rainmaker
88,148
StepStone Realty
StepStone Realty, LLC - Austin, TX
Freedom to Succeed

That's too bad.  I flip properties and I think people underestimate what a positive impact it has on a neighborhood.... we turn the unsightly into the gem and I've never had a neighbor do anything but thank me!  Let's make it easier on flippers to make money so our neighborhoods can improve!

Mar 05, 2010 11:43 PM #2
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Rainmaker
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Natalie De Leo

Former Realtor now Mortgage Consultants
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