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.
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!