Fannie Mae foreclosure purchase?
Question:
"Grantee herein shall be prohibited from conveying captioned property to a bonafide purchaser for value for a sales price of greater than $150,000 for a period of 3 months from the date of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the principal amount of greater that $150,000 for a period of 3 motnhs from the date of this deed. This restriction shall terminate immediately upon conveyance at any forclosure sale related to a mortgage or deed of trust. "
Can anyone explain this to me and put this in plain english terms. The home is in Texas if that makes any difference. Is there anyway around this clause?
Answer:
From my interpretation, sounds like it saying that you cannot sell the property for more than $150k before 3 months of the purchase and you cannot mortgage the property for more than $150k before 3 months. It is put into place to discourage "flipping" the house. I would advise speaking with an attorney for a exact interpretation.
I think Dan's got it right on the money. No selling or financing over $150K for 3 months after purchase.
And if that's in their contract, it ain't going away, and I can't imagine there's a way around it. Fannie Mae is a multi-billion dollar company with an army of attorneys. I wouldn't mess with it. Just sell or finance in 3 months and 1 day and make your life simpler.
More Related Questions & Answers...