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Permalink Reply by Cameron Piper - Keller Williams on April 15, 2011 at 7:00am

Joe, 

 

What exactly are you trying to accomplish?  Who is buying the property that needs to turn around and sell it in 30 days.  If you give the collective a bit more information - we can all brainstorm some ideas.

 

My experience with banks and their forms and clauses is that they carry a take it or leave it mentality.  You might consider talking to an attorney about how they think B of A would be able to enforce such a clause once they have relinquished their lien.  Its one thing to say that you can't do something, it is an entirely different scenario to attempt to enforce such a clause.

 

Cameron Piper

Coldwell Banker Burnet

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Permalink Reply by Joseph M. Sarao on April 15, 2011 at 8:16am

I am buying it from the bank with the intent to re-sell it right away to an end buyer. We typically have all of this set up and it has gone very smooth in the past. We purchase it from the bank with our funds and than re-sell it to and end buyer.

 

Now we received an approval from B of A and it has a clause stating that we must hold it for 30 days. I can still close on it but there is a higher chance to lose the buyer in those 30 days.

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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on April 15, 2011 at 8:48am

This "Rule" exists to prevent exactly what it sounds like you are doing....

It sounds like you have already "sold" the property (flip) to an end-buyer before you actually own it - that's no different than assigning the contract. 

 

BofA (as many banks/investors) would rather sell to that end-buyer directly and reap the addditional $$ - in other words, they would like to get market value rather than something less.  It sounds like you got a deal and are able to flip it for market value to somone already lined-up.  This is why banks are hesitant to sell to investors and place restrictions on resale.  Personally, I think the resale restruction should be 180 days minimum.

 

Best of luck,

Thom Colby

Broker

Newport Beach CA

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Permalink Reply by Cameron Piper - Keller Williams on April 15, 2011 at 8:53am

Thom,

 

I'll echo your concerns.  The banks want to sell property for market value and not for wholesale value - in fact I am finding increasing pressure from banks stating that as agents we are liable for presenting offers that are less than market value.  While it will take time to flush out exactly what is happening, I think the a new trend is emerging wherein agents are going to hold more liability for the value of the offers presented.

 

I'm not an expert on NJ but Joseph, you may want to look into the legality of what you are doing.  Many states have restrictions against this very practice. 

 

Cameron Piper

Coldwell Banker Burnet

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Permalink Reply by Smitty on April 15, 2011 at 1:04pm

Joe, did you disclose you were selling immediately in your contract?  If so, have your title attorney contact the BOA negotiator and let them know they can't issue insurance because of the restriction on the deed.  We've had success getting the 30 day restriction removed with this. It HAS to have been disclosed that you were reselling in your contract.

What you are doing is perfectly legal and acceptable if it was disclosed to BOA contrary to belief.

Good luck.

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