VA Foreclosure Flip

Replies

Jeff Payne March 5, 2013 at 10:42am

Wendy, No there is not.... some of the asset managers automatically try to include 60 or 90 days it is not a requirement.
- Wendy Rulnick > Jeff Payne March 5, 2013 at 10:52am
  
  Jeff - That is what I am talking about. The listing agent in Niceville for the one my buyer wants says there will be a re-sale time period restriction, but he doesn't know how long.
  - Jeff Payne > Wendy Rulnick March 6, 2013 at 3:50am
    
    Wendy, it would be in the counter offer, otherwise it does not exist.
    - Wendy Rulnick > Jeff Payne March 6, 2013 at 6:28am
      
      Jeff, I will advise here if I do get such a counter from the VA.
  - 31cg1fw8yxswn > Wendy Rulnick March 5, 2013 at 11:11am
    
    The only way I know if that an owner of property can be restricted in sale would be a right to redemption after foreclosure. I can think of no other reason to have that in any document, including the mortgage. An owner has the right to sell any property at any time for any reason....unless prohibited by a contract or law...the only purpose of such restriction that I can think of is redemption.
    
    I am not saying that it is not the owner's policy to hold property for a certain length of time, that is another issue.
    
    I suppose it could be in the way that VA gets its $$$ paid off for loss. That again would seem to be based on policy.
    - Jeff Payne > 31cg1fw8yxswn March 6, 2013 at 3:49am
      
      Dirk,
      
      This is the verbiage that many REO contracts are required to have.
      The Grantee(s) or purchaser(s) of the Property may not re-sell record an additional conveyance document or otherwise transfer title to the Property within 60 days following the Grantor’s execution of this Deed.
      
      Wendy is referring to an REO property that is owned by the VA. It would be something on any mortgage but would be a deed restriction most likely so the owner does not have the right to sell the property at anytime for any reason if there is a deed restriction that dictates otherwise. It is a restriction that some bonehead thought would discourage flipping the property.
      
      Wendy,
      
      I checked back on some of my past VA REO and none had that verbiage in the contract. That does not necessarily mean that a vendor that sells VA REO wont require it.
      - 31cg1fw8yxswn > Jeff Payne March 6, 2013 at 7:04am
        
        hmm that means that one can immediatlly market the property with a pre-determined closing date set.
        
        They could even have a contract for sale day one (or even subject to the purchase as long as there was any $$ deposit or a $20 noon-refundable deposit made!) with a lease for 60 days and close in 61 days.
        
        This is a worthless encumberance to the property. It creates no value and in fact may deplete value overall.
        
        Isn't real estate fun!!
31cg1fw8yxswn March 5, 2013 at 6:55am

This usually follows state laws for foreclosures/real property law. If there is a redemption period it will most likely be in accordance with state law or in the mortgage docs themselves if allowed in addition to state law. Check your state laws and the mortgage itself.

If you are on the buyer side, not an issue, just check the same two places to know if there is a chance of redemption and therefore loss of your time.
- Jeff Payne > 31cg1fw8yxswn March 5, 2013 at 10:43am
  
  Dirk, there is no mortgage, Wendy is referring to a VA REO property. Some REO require that the buyer not resell the property for a period of time. THe VA REO that I have sold did not have the restrictive verbiage.