What About Deed Restrictions In the Bank Addendums

Not all the banks are having deed restrictions. Fannie Mae and Bank of America are doing this strongly to discourage investors. There are other banks following Fannie Mae restrictions but not as strong. Although they have deed restrictions, they also say that you cannot resell this property within 90 days for such amount, usually this amount is 20% of your purchased price, so you still have some room available if you want to do double closing. You really need to find this out.

Also, you can always submit your offer asking for no deed restrictions. It will really depends on how desparate the seller is in order to relax this restriction.

Be difficult to do. Banks are hard to work with, but that doesn't necessarily mean that you're not gonna get any good deals from them. Your options are just going to be limited.
As far as I know, banks won't do assignments, some don't like double closings, but will still do them, and its hard to get them to rescind terms they put in their contract.
Good luck!

RENinjs

Thanks for the info,i guess i'll ask on contract for no deed restrictions because i dont have enough time to do more research.Thank god most banks are desperate right now right.

As stated above, it depends on the bank. You'll have to read the contract carefully. Typically they'll require you to sign their contract, and there may be wording in there that states "any modification of this contract makes it invalid".

Hope that helps,

- Tom

This MAY be where the LLC or Trust strategy come into play OR your buyer can go directly on title if you know how to arrange this.

I mentor, PM me if you have any interest.

Michael Mangham
MD Home Acquisitions LLC

Is far too vague and very likely to be shot down. Making you own a property for 90 days before you sell is easy to get around. It was started by VA/FHA to try to keep investors off their inventory, but other lenders are jumping on the bandwagon.

Why will the phrase "no deed restrictions" not work? Because there are a million different ways a deed can be restricted that have nothing to do with requiring 90-day ownership. If you block them all with this phrase, you might disasterously reduce the number of properties you can invest in.

Unless I'm wrong, every HOA (Home Owner Association) in this country restricts the deeds of every property in their jurisdiction. That way they can control how the houses and yards look in the neighborhood. Example: No grass taller than 4 inches, no metal roofs, no junk cars in the yard, no pastel colored houses, etc., etc. Plus, it allows the HOA to foreclose on anyone who doesn't pay their dues.

Now, in addition to HOA's, there are thousands of neighborhoods and subdivisions who aren't HOA's, but they restrict deeds also. Keeping trailers out of a house neighborhood, keeping houses out of a trailer park, keeping the land, but selling or renting the trailer in a trailer park. The type of restrictions imaginable are endless.

Instead of saying "no deed restrictions" in your offers and contracts, try saying "no ownership seasoning/time limit." It'll still get the effect you're looking for, without blocking yourself from other deals.

BTW I'm a State fan too - actually went to school there so don't let my profile pic bother you. Go State! Hope this helped...