Getting Around the 90 Day Deed Restriction and Seasoning Rules

So I got this question in the other day on my blog...

Banks are currently requiring the 90-day seasoning rule. It is becoming very difficult to flip REO properties at this point unless you are planning a rehab. How can you get around this problem?

~Kim

Here's the deal...

If there is a 90 day deed restriction on the title, then you have to wait till the 90 days is up if you wanna resell to another buyer for more than 120% of the purchase price. Doesn't matter if the buyer is cash or using some type of financing.

In addition to this, the 90 Anti-Flipping Rule prevents FHA borrowers from getting a mortgage until after the owner has owned the property for at least 90 days.

So how do you get around this?

1. In December the FHA announced that they are extending the suspension of the rule that's in effect for 2 more years until December 2014.

So you don't have to worry about it anyway.

2. If there was some sort of deed restriction on a potential property you can always ask for it to be removed or simply do what I do...

Find a regular bank owned property and stay away from Fannie and Freddie properties.

3. On the borrowers side, when you are rehab flipping make sure the borrower is getting a conventional loan instead of an FHA loan.

Like I said, the FHA extended the suspension until the ending of 2014, and at the rate investors are helping the market the FHA will probably extend the suspension again anyways 🙂

So nothing to worry about.

With that said, if your ready to stop trying to figure out what works, and start implementing proven strategies when flipping bank owned houses...

Watch this video now... And Take Action >>

Talk Soon.

Jamel

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