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mpollis
98 Posts |
 Posted - 07/03/2009 : 07:27:51 AM
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| I just found out that a deal that I have is a flip. The seller is not on title and will be doing a flip at closing. It is a short sale that an investor has a contract on and plans to flip it to my buyer at time of closing. It is a conventional purchase in Florida. Are there any lenders that will take this out there? |
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peter
6465 Posts |
Posted - 07/03/2009 : 09:01:52 AM
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I found out from a Flagstar A/E that Fannie and Freddie don't
have the anti-flipping rule that requires a 90-day waiting period
like FHA. However, they have their own overlays that require
deed restrictions and at least 120-day (their own overlay).
So far, hard money lenders are the only solution. They don't
mind doing the flips.
Peter |
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slants
4982 Posts |
Posted - 07/03/2009 : 09:06:44 AM
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| Flagstar did not have an anti-flip guideline the last time I checked. Did they just implement this? BofA and I think Wells Fargo will do flips. We close 20+ of these a month. |
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peter
6465 Posts |
Posted - 07/03/2009 : 09:31:35 AM
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Helen, are you sure that B of A and Wells do allow flips?
I have one house now that was bought by an investor on April 22nd,
and the seller is a LLC. I do not want to wait for 90 days to
do FHA and I called both of my B of A A/E and Wells A/E.
They told me that the max I could do would be 80% LTV as the
MI company would not allow less than 120-day title seasoning.
If I could do it at 95% LTV, then I could do this 2-month
title seasoning loan.
Pls advise. Thank you.
Peter |
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Captain Mortgage
2559 Posts |
Posted - 07/03/2009 : 09:33:47 AM
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| I know that Wells retail will not do flips. Also I think there is only one title company that will allow a double closing like that. |
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peter
6465 Posts |
Posted - 07/03/2009 : 09:35:42 AM
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Joel, would you mind telling me what title company?
Thank you.
Peter |
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peter
6465 Posts |
Posted - 07/03/2009 : 09:37:59 AM
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Slants, just talked to Flagstar A/E and NO they still don't have
any anti-flipping rule and still don't have any overlay on their
own unlike others such as Plaza that requires a min of 120 days as
own overlay.
Peter |
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slants
4982 Posts |
Posted - 07/03/2009 : 09:40:06 AM
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quote:
Originally posted by peter
Helen, are you sure that B of A and Wells do allow flips?
I have one house now that was bought by an investor on April 22nd,
and the seller is a LLC. I do not want to wait for 90 days to
do FHA and I called both of my B of A A/E and Wells A/E.
They told me that the max I could do would be 80% LTV as the
MI company would not allow less than 120-day title seasoning.
If I could do it at 95% LTV, then I could do this 2-month
title seasoning loan.
Pls advise. Thank you.
Peter
I work for a company who buys hundreds of LA & Ventura county properties a year at Trustee's sales. They are rehabed and immediately listed for sale upon acquisition. Often times, they are placed into escrow without even marketing them. We flipped 25 of them in May and about 20 in June with another 40 open escrows in the pipeline. I know BofA did most if not all of them. I do not see the lender on the Seller's side of the HUD, but I can survey our escrow companies on Monday to find out - we use the same 3 - 4 escrow companies on all closings. FYI, max LTV is 90% in Cali now that Radian no longer insures CA properties. No MI > 90%. |
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ShamWow
171 Posts |
Posted - 07/03/2009 : 09:49:48 AM
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Flagstar put out this announcement yesterday:
SHORT SALES: Memo #: 09134
When a borrower is purchasing a home, ownership of the property must be verified. Property ownership from the sales agreement, AVM, appraisal and title commitment should all match. Any discrepancies must be addressed.
A sales trend has emerged in which sale transactions are being submitted with concurrent sales occurring at closing (flipping). Homes are purchased/acquired at a reduced price. That purchaser then attempts to sell the property to a potential applicant without closing on the transaction prior. These transactions are not eligible. All sales and property transfers must be disclosed.
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mpollis
98 Posts |
Posted - 07/03/2009 : 10:05:12 AM
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| I called Flagstar, AmTrust, and Wells and they all said that they would not touch the deal. Will B of A do it? |
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slants
4982 Posts |
Posted - 07/03/2009 : 10:07:16 AM
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quote:
Originally posted by mpollis
I just found out that a deal that I have is a flip. The seller is not on title and will be doing a flip at closing. It is a short sale that an investor has a contract on and plans to flip it to my buyer at time of closing. It is a conventional purchase in Florida. Are there any lenders that will take this out there?
Double closing where investor "assigns" his purchase to a buyer for a markup fee without closing his purchase = no way in institutional lending. Investor will have to close the deal and write a new contract to end buyer. Otherwise end buyer may find hard money to finance it. |
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