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Susan I am Realtor in chicago can you email me whenever you get chance .
Thanks you so much
I've helped owner occupant buyer's with Fannie Mae purchases. No big deal, easy deal. However, now I'm dealing with cash investor's and have been told the buyer can not resell the home after rehab for 3 months and for not over 120% of the purchase price. First of all the home is not nearly worth the list price, needs lots of work. It was listed at $110,000 same as brand new when was purchased last. Needs about 20,000 in repairs. Price is 87,900 now. Still not low enough to make a profit. Anyway sorry...my question is.....is it true a Cash Investor must not sell for 3 months and for not over 120% of sales price.
Thanks in advance for any advice dealing with FM.....no investor is going to wait 3 months to turn over. Dang it..What to do? BTW, can't get the listing agent to return my calls....not a good sign. Judy
Fannie has always been pretty anti-investor. As a government entity, their priority is in home-ownership... not lining the pockets of investors. For this reason (and the inflated list prices), I wouldn't even consider showing Fannie properties to an investor. There should be plenty non-Fannie deals out there.
For what it's worth, I haven't seen any instances of Fannie going after an investor for selling above 120% or within less than 90 days... but that doesn't mean they won't. Contract law can be a very sticky area to deal with... so I'd just avoid these homes all together.
I can say that I have personally seen Fannie go after an investor and fined them $10K. They signed the contract saying they would be owner occupant and then it was relisted (all rehabbed) 2 months later.
You can sell within the 3 month period just not for more that 120% of the purchase price. Beyond the 3 month period you are not limited on profit meaning you can sell for more that 120%.
Yep that's the deal. I've had investors that have no problem waiting 120 days. They list while they are fixing it up and day 121 sell for market value. No big deal.
If you REALLY NEED to talk to a listing agent, call their broker. Try email with a copy to the broker.
Susan I work in San Diego. Could you email me as well?? Teigerhomes@cox.net Jason