Offlinei found a reo properety and the bank has a deed restriction clause in the contract for 90 days how do i get over this please help
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Hey Charmaine,
There isn't much you can do with this. I have heard of people putting a line through that part of the contract and then seeing if the bank allows it to be crossed out, but from what I understand its usually a no go. I have heard of people buying the house with an LLC and then selling the LLC to another person, but that person would have to be an investor that does not need a loan because no bank will give a mortgage on an LLC purchase.
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I appreciate the response i am noticing that with the REO from BOA
will be working hard to get properties under contracts next week.
I am determined dedicated and will make it in real estate thanks Dean
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Where is the property from?
HUD, Fannie Mae, Freddie Mac properties for example have 90 day deed restrictions and from what I've read and heard is this restriction doesn't allow you to sell the property for more then 20% of what you purchased it for, but yet are still able to sell it in the 90 days for up to 20% profit
for example
If i bought the property for 100k I could still sell it within the 90 day restriction period for 120k but no more.
So if that was the restriction you found , I wouldn't let that stop you from making an offer on the property still
I have bought several properties that have 90 day deed restrictions. I rehabbed the properties, the rehab took 45 days. Then I put the property on the market. It takes about 30- 60 days to find a buyer, by the time they close the 90 days are up.
If I found a buyer the day after I finish the rehab it doesn’t mean I can’t market the property, all I would do is delay the closing until the restriction period has ended. Shouldn’t be a problem if you explain it to the buyer.
*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*
Bennie is right on the ball here. The 90 day restriction is to keep wholesalers from flipping the property immediately. If there is rehabbing to be done, you shouldn't have a problem. When you combine the time to properly fix up the property and the re-marketing time, you should be close to our outside the restriction. If you are planning on renting out the property, then sit back and enjoy the cash flow until the restriction expires.