I know an investor who does quick wholesale flips, often within a day or two. His Realtor said that he has sold his flips to people who get mortgage loans to buy his deals. This Realtor says that he set up a relocation company to buy the property with which avoid issues with title seasoning with his end buyer’s mortgage company.
Is there some special provision that allows a relocation company to take title to a property and then avoid the whole title seasoning issue so the property can be flipped quickly?
Sales of properties purchased by relocation agencies in connection with the relocation of employees may be exempt from the 90 day FHA seasoning policy. Buyer will need proof of relocation.
Thank you, bosshaug.
A Realtor for an investor who is flipping short sales said the investor puts the property into trust or his relo company. If he can set up a relo company to avoid the title seasoning issue to flip his 24-hour short sales, couldn’t anyone do this? Or is this fraud of some kind?
If you are ever in doubt as to if something is fraudulent or not, remember that if you have no intention to do a thing then it is fraud. Lying in business is fraud. If you don’t intend to relocate anybody then that is fraud.
Thank you for the morality check as well as the warning. In this business, it can be easy to lose sight of what’s right and wrong given the large amounts of money being thrown around.