Posted by Killer Joe on June 12, 2006 at 15:54:50:
Judah,
Try this link and look for the PDF files located about mid page.
http://www.efanniemae.com/sf/guides/ssg/rrclt/index.jsp
KJ
(HTH, the computer I’m writing this from can’t access PDF files presently so I have not read these files, but I believe they will be on topic)
Fannie Mae Deed Restrictions? - Posted by Scott - MI
Posted by Scott - MI on June 12, 2006 at 12:11:32:
Hi all,
Just wanting to see if anyone can direct me to read about the Fannie Mae Deed Restrictions. What I’ve heard is that if you buy a property from Fannie Mae as an Investor or Non-owner occupant that you cannot either sell for a profit or “pull” cash out by refinancing for 6 months.
I have went to the website for Fannie Mae, but cannot find anything out.
Any guidance will be greatly appreciated.
Scott Ferguson
Re: Fannie Mae Deed Restrictions? - Posted by Paris Rehab
Posted by Paris Rehab on June 13, 2006 at 20:47:13:
The following is copied verbatim from the purchase addendum to the real estate contract which was used to purchase a fannie mae foreclosure property:
“Grantee herein shall be prohibited from conveying captioned property to a bonafide purchaser for value for a sales price of greater than $* for a period of six months from the date of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the principal amount of greater than $_* for a period of six months from the date of this deed. These restrictions shall run with the land and are not personal to grantee. This restriction shall terminate immediately upon conveyance at any foreclosure sale related to a mortgage or deed of trust.”
*(Note: Sales representative to calculate value to be inserted in paragraph at 120% of sales price rounded to the nearest $100)
We need more info? John Corey help - Posted by Judah hardmoney Hoover
Posted by Judah hardmoney Hoover on June 12, 2006 at 14:31:51:
We need more info? John Corey help
I logged on today just to ask this question. I buy homes and lend hardmoeny so it pays for me to stay up on these kinds of changes. I just lost a deal because I could not lend purchase + rehab + closing costs. They limit the amount of mortgage the buyer could take out to 120% of purchase price for 90 days. I have never seen this before, has FNMA changed something? Is there a way to get around deed restrictions like this? It was written in fine print in the purchase contract so: the buyer, me, title agent, and legal counsel (all who look before we lend) missed the restriction. We missed it until the deed came over the day of the settlement. Officially the buyer shouldn?t have signed the contract with that in, but is it an offer FNMA will accept with out it? I lend hardmoney on a lot of bank REO?s that are actually FNMA owned? this could cause problems. I am going to post the same thing over on the Financing side.
I hope a learned man like John Corey can put down the copy of ?Great Englishmen? he is reading today and help us out.
Re: Fannie Mae Deed Restrictions? - Posted by Joe
Posted by Joe on June 12, 2006 at 13:11:09:
I haven’t heard of that one. But I’ve heard that you can’t sell to buyers with FNMA backed loans within a certain time period after buying (6 months or 1 year, I forget).
Re: We need more info? John Corey help - Posted by John Corey
Posted by John Corey on June 13, 2006 at 19:16:49:
Judah,
Either publish the relevant section here or email it to me as I want to see what the restriction actually says.
Who created the deed restriction? Not that non-profits or other entities can create a restriction before the foreclosure ever takes place. Some of the new guidelines talk about FNMA honoring the restrictions as opposed to creating restrictions. It would be useful to know when the restriction was first placed on the deed.
John Corey