How big of an issue is title seasoning?
If I’m wholesaling a property, I understand that I’d want to do a double close, or just assign the purchase contract if at all possible to avoid the seasoning issues.
However, what if I’m flipping? I mean, it sounds like by actually purchasing the property and reselling it within a few months I’d be limiting my pool of potential buyers severely because of title seasoning issues.
I hate to use TV as an example, but every flip show out there the target is to unload the property within the first couple months - are they running into seasoning issues? Would the bank look at it differently if it was a company that purchased and resold the property instead of an individual? Or is it more of a situation where they’d want to see what went into the property that changed the value so drastically?
Don’t tell me that every bank is different, I already know that. What I’m wondering is if I get involved with a flip, and it’s ready to sell within 2-3 months - real world, what kind of issue am I going to have with seasoning? Or, at the very least, what should I be preparing for?
Good news… Bad news.
Good News, You already have the answer. Bad News, It’s every bank is different.
You could buy sub2, then no seasoning issue.
You could pay all cash, no seas issue.
You could purchase with room in your contract to do repairs and market b4 closing and then assign.
Company purchasing property makes no diff on seasoning issue.
When you buy with new financing tell your mort Broker you are going to sell in a few months so he sells you the right kind of loan product. If new buyers bank has issues with short chain of title If posiible I send the purchasers to my loan broker who has many sources of money and he will find a source with no problems. The challenges are if your buyers are weak or your product is a mobile which all narrows your buyers choices of funding. Banks dislike weak buyers and mobiles/ugly houses and combined equals huge challenges…Darin
You have a few options:
There are Lenders that will allow financing for properties with no seasoning on Title.
The bad news, the borrower will pay in rate or lower LTV.
Also, there are Lenders that will allow you to cashout refi after you purchase the property with 1 day seasoning on Title to 90%.
You can refi and pull cash-out, then get the rest of your cash at selling.
Hope this helps.
Also, there are Lenders that will allow you to cashout refi after you purchase the property with 1 day seasoning on Title to 90%.
i live in MD and am looking for a lender like this.
can you forward me some contacts.
thanks