Does anyone know if there is a deed restriction on resale of a home purchased through a VA compromise sale? FHA and Fannie Mae restrict resale (for over 20% of the purchase price) for 90 days I believe. Thanks.
Brenda, Typically VA does NOT require the resale language in the new deed. Check with the Servicer though... Sometimes they will require the language. We recently had an FHA file where the restrictive language was required by the Servicer, not FHA. Chad.
I agree with Chad's reply. We've had Servicers require deed restriction language on FHA PFS's, and also had one (Navey Federal) require it on a VA Compromise, neither which were required by FHA or VA. Many Servicers have copied the FNMA deed restriction language and are applying to their own SS requirements.