Hey, does anyone who have done flipping fixer-upper REO or foreclosure homes?

are Banks really don’t like us to buy just because we are not doing to live there for next 6 month till sell them.

what is your advice to deal with banks?

Howdy Rehabbermeg:

You are a little misinformed. REO property is available to homeowner and investor alike. HUD and Va homes are limited to owner occupant buyers for a while and they to investors. Normal banks do not care who buys but most do not want new investors who do not have financing to try to get them under contract and then try to flip them. They will want a no assignment agreement and proof that you have been approved for financing. This is pretty much standard today.

Also where the 6 months ownership comes to play is when you try to resell it and have not owned it long enough for some banks. There has been a lot of illegal flipping done and this is one way to help stop. There are still lenders that will lend without the seasoning requirement. Get your buyer to use one of theses and you will be OK.

Hope this helps answer your questions.

thanks, tedjr
i am learning :wink: :stuck_out_tongue:
i am interesting in buying fixer-uppers and selling kind of deal.
i am at least holding for 5-6 months untill put a sale sign.

assigning clause only apply to someone does wholesaling/double closing?
do I have to do assigning clause if i am planinng to keep it less than a year? or it is depending on banks like you mentioned.

would you please educate me?

sorry, what was i thinking?
you don’t need assigning contract if you go through the closing and get your tittle right?
after that, you can do whatevern you want as long as you own the property.
well, i got a lot of studying to do :-[

Howdy Rehabbermeg:

The no assignment clause really only affects buyers who want to flip the property and are not the actual buyers. Once the bank has the cash you can do what you want with the property. There are of course exceptions to this like owner occupied HUD properties but in general once you own it it is yours to do what you please.

Howdy Rehabbermeg:

It is easy to get confused with all the new HUD and FHA and VA guidelines and the new anti fraud loan guidelines as well as the lease/option laws in Texas. It is getting harder to make an honest dollar.

so VA or HUD regulations are pretty much the same around the country,right?
so if I am not going to live or keep the property for more than a year, then do you think I shouldn’t waste my time for looking or dealing with thoese HUD /VA properties?

Howdy Rehabbermeg:

I bought a VA foreclosure and will fix it and rent it out. They both have some good deals. They offer them the first 10 days or so to homeowners and then to the public. Sorry if I confused you on this. Your local Broker will let you know which ones you can bid on if you so desire.

FHA financing is mostly where you will have problems when you are trying to sell a property you have fixed up and have not owned long enough whether you live in it or not does not matter.