Posted by John Oh on April 03, 2003 at 07:17:00:
Mike, I think you can find these answers in the archive.
Seasoning issues = lenders have come to believe that they can protect themselves from illegal type flips if the seller has ownership for at least 12 months.
This is an issue mainly when buyer has less than excellant credit, but even then the question seems to arise in almost every deal now-a-days.
I am able to get around this problem, by doing the following.
Take before and after photos
Keep copies of receipts
Maintain a list of repairs.
some lenders want you to prove you bought it
in a distressed sale.)
Our appraisers can also validate that it was an
actualy rehab and not just a flip. (Of course
some will tell you that you cannot flip)
In the last year the lenders seem to be loosening up in this area. Many lenders have changed to looking for only 6 months of seasoning.
This all makes Lease Options a much more attractive idea!
Good Luck
John OH