Short Sale Restrictions - Be Informed!

By
Real Estate Agent with RE/Max Associates DE#R1-0003085 PA#RS347136

Attention Real Estate Investors: 


If you purchase a short sale and the Seller's investor is Fannie Mae or Freddie Mac, be aware that you, as the buyer, are prohibited from selling the property for any sales price for a period of 30 days from the date of the deed.

Sales contract


After a 30 day period, and until 90 days from the date of the deed the buyer is further prohibited from selling the property for a sales price greater than 120% of the short sale price.


Note: The above restrictions will run with the land and are not personal to the grantee.


These are being advertised as new regulations, but I've personally seen these in effect for a while.. at least the last year.

Short Sale Sellers - Relocation Assistance:
If the Seller's investor is Fannie Mae or Freddie Mac, the Seller (borrower) may be entitled to an incentive payment of $3,000 from Fannie Mae/Freddie Mac to assist with relocation expenses following successful completion of a short sale unless:
The borrower is required to contribute funds or execute a promissory note.
The borrower has Permanent Change of Station (PCS) orders and receives a Dislocation Allowance (DLA) or other government relocation assistance.
The servicer has knowledge that the borrower is receiving relocation assistance from another source other than the servicer.

Note: If the borrower receives relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer, the difference in the relocation assistance amount up to the $3,000 incentive maximum may be provided. If the borrower will receive relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer and the amount is equal to or greater than $3,000, no relocation incentive will be provided.

 

Sellers, be sure to check the requirements for this, specific to your own sale. If you move out too early, you might not be eligible for the assistance.

 

.......

The long and the short of it? If you're buying a short sale, be aware of any restrictions on the purchase. If you're selling short, get the details. It really pays to work with a REALTOR who knows short sales.

 

Selling short? Interested in buying short sales? Call me. I've been working with short sales on both sides for thirteen years. It really does pay to work with an experienced REALTOR!

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Tags:
buyers
investors
short sales
sellers

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
161,583
Wika Hutchinson
Eugene, OR
Broker, CRIS, SFR, CDPE
Great post Monica. Thank you for sharing it with us here.
Jan 21, 2013 01:49 AM #1
Rainmaker
247,175
Monica Hill
RE/Max Associates - Wilmington, DE
the REALTOR to help you discover Delaware

You're welcome, Wika. This news is circulating now like it's new... so it just pays to be informed!

 

Jan 21, 2013 02:10 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
247,175

Monica Hill

the REALTOR to help you discover Delaware
Discover the difference in Delaware!
*
*
*
*
Spam prevention