I had a broker tell me today on a SS I’m doing that I need to do improvements on the home to do a Back to Back close. Also he said I need to own the property for 90 days to sell.
Is the no seasoning issue still vaid? Can anyone shine any light on these situation. Thanks
Hi,
Read the Freddie Mac postings in the "Short Sale Fraud" posting, we have been weighing the consequences and it appears that back to back closings will no longer be available as there basically saying that they consider us as investors who tie up a property in contract (A-B), then re-contract to sell it to a new buyer (B-C) is considered fraud if you found the new buyer before you closed on your purchase.
Although the waiver of the 90 day provision still stands (Till Febuary 1,2011), you will have to put 20% to 30% or more down and close with hard money, then re-list your then legally owned property for sale, and if you find a new buyer right away you can close in 45 or 50 days to you new buyer who is using an FHA loan.
This has basically taken the wind out of the sails of the “Back to Back” (A-B / B-C) one minute, fifteen minute, one hour or next day back to back closing using transitional funding!
You now “CAN NOT” market, advertise, have knowledge or have anyone who might have interest to buy your short sale until after you close escrow yourself and take title.
So if you were trying to do a back to back closing, your evidently not doing it anymore? (In other words you will need to buy then sell to not commit fraud!)
As to needing to make some improvements, etc. this could be to meet new appraisal standards or underwriting conditions of value?
Good luck,
GR