Fannie Mae - Posted by Harold Bozeman

Posted by Harold on July 10, 2002 at 15:39:10:

Thanks for your input Gerald. I have already spoken with a RE attorney in my area that will do simos for me, I just didn’t know whether FNMA would object. Whould their representative accept waiting for payment until after I close with my buyer? DO they even have to know there will be 2 closings or does my lawyer just tell them that cash out will be at the end of the business day? Sorry if I seem full of questions, but I’m anxious to give this a try, this would make an awesome first deal if I can get it through.

Fannie Mae - Posted by Harold Bozeman

Posted by Harold Bozeman on July 09, 2002 at 18:25:14:

I have just been reading some posts on the boards and I see that Fannie Mae owned properties are available through local Realtors. My question is this, has anyone ever tried to do a simultaneous closing on a Fannie Mae owned property or is it possible to assign a contract made with Fannie Mae?
There is a house in my area on which the comps are 215,000 to 242,000 and FNMA is into the property for 109,000, so either way (flip or assignment) I stand to make a little profit if I do this right.
Thanks in advance to all for suggestions or advice.

Re: Fannie Mae - Posted by Gerald-DC

Posted by Gerald-DC on July 10, 2002 at 02:30:32:


Fanniemae will not entertain any assingment of contract or go out of it way do any creative deals for you.

If you want to flip the contract, I suggest you follow the methods outlined in Steve Cook’s course whereby you form an LLC to purchase the property and sell the rights of the LLC to your buyer(rehabber). If you put anything about an assignment in the contract, your contract will not be accepted.

As far as doina simo closing, it is hard to find title companies to do these types of closing (but not impossible). If you think the deal makes sense for you after you do a simo closing and factor in all the closing costs and you can find an atty or closing company to do it, then go for it.

If you don’t have Steve’s course (flipping course) I think you should get it. It is relatively inexpensive, but pound for pound it is one of the best courses that I have purchased. (And I got a bunch).

Re: Fannie Mae - Posted by Harold

Posted by Harold on July 09, 2002 at 18:27:03:

I forgot to mention, this is definitely an “ugly house” in need of rehab, so my sell would be to rehab investors or the like.