Seasoning

Bird Dogs, Wholesaling
1

I don’t understand the meaning of “seasoning” and why lender/banks sometimes require it when a person applies for a loan. Is it because (1) the person’s credit score is low, or there’s no credit history? (2) when “seasoning” is written into a contract…is that a positive or negative towards the buyer?
(3) who really benefits from seasoning when it’s written into a contract?

latestarter56

2

Howdy Latestarter56:

Seasoning is how long the current seller has owned the property. It is a new issue due to lenders getting scammed by crooks that would buy and flip property between each other and get bogus appraisals and get inflated loans and then never pay them back. It has nothing to do with the borrowers credit.