Fannie Mae Foreclosure
I just purchased a Fannie Mae forcloser (with cash) and one on the conditions in their purchase addendum is I cant sale or get a security interest loan on the property for 180 days. My question is ...If there is nothing written to this affect on the deed how would they know and what could they do If I did? Any one ever heard of this type of addendum?
Have some integrity and honor what you agreed to.
Quote:
On 2006-04-20 19:53, linlin wrote:
Have some integrity and honor what you agreed to.
I have no plans not to do what I agreed to. But after buying more than 25 foreclosures and many other properties I had never seen anything like this. I just wanted to know if anyone else had ever run into anything like this. Six months is nothing when I can turn a $15,000 profit without having to do a thing to the house once the deed is clear.
Well if they find out whether now or later and you agreed to those terms. Then that will be fraud, and the penalties can be harsh. Dont buck the system. That should have been in your plans when you bought the property, to hold off until the 180 were up.
The law will come down on you hard. Do the right thing and wait.
Hi All ,
Does anyone know if this rule apply to property bought as a Bank Reo also.
Thanks
[addsig]
InvestmentBanker,
You are exactly right. After going through the closing they explained it just the way you did. That was all I was looking for when I made this post. I wish others here would be as helpful as you and just not post there option and try and slam people like the first two who replied did.
It was just changed from six months to three months in Florida.
If you cant find a title company to do a double closing contact an attorney and they can point to the right companies to use.
double close and be done with it. it will only cost little more of attorney fees. Dont lose a deal trying to out smart the bank.
Thank you again Radio52.
be careful what radio 52 just said about using a pool of money from different investors. If you happen to lose on the deal. Beware, the securities department will be sure to come after you for not have proper license to invest others money.
If you plan on investing others money, you have to give them a job, to show that you are equal partners. In order to take someones money, you are acting as an adviser, and without a license. You will soon face criminal charges, whether you know or not. Contact a good attorney before you use other peoples money.
One way to do it is to set up an LLC, with you as the manager and the investors as members. As long as there are restrictions on selling your interest in the LLC (Must offer it to other members first, typically, often at a pre set price) you do not fall under the auspices of the SEC.
Still a consultation with a lawyer is always a good idea. Our attorney put clauses in the LLC that I had no idea why they were there- until a situation came up that made it obvious he had more experience in this sort of thing than I did. And not just once; time and time again our ass was saved by the foresight of a good attorney. A large firm has dealt with countless disputes, and their LLC specialist will have the benefit of all those prior problems to draw on. It cost 3 grand to set it up, but it was SO worth it!
And good luck!
Chris
Wow Chirs that is pretty expensive. Did you try prepaid legal services?
In my area it only cost 580 dollars to set up a llc with asset protection and corporate veils.
Well Radio52, you should have made more emphasis. Most people would have ignored that part of the message.
If it costs more than 700 dollars to set up a llc, go online. For the same thing chris is saying, you can get it all done rather cheap.