I bought a property, the closing and the Deed to my company was executed on 4/11/12. Said deed was recorded 4/18/12. I fixed the property up, listed it for sale, and I now have a contract to sell it to a retail buyer. The buyer is saying that their lender will not order the appraisal till 90 days after the Deed was recorded, I believe that the Fannie/Freddie rule is that the date of sale is the important date that starts the 90 day clock, not the date of recording of the Deed. Which interpretation of the 90 day rule is correct?
Jack - Please clarify what 90 day rule you are referring to…
Is the buyer getting an FHA loan that most lenders require 90 days of title seasoning on?
or
Was this a property purchased from Fannie Mae or some entity that put a 90 day deed restriction in place?
If it’s the FHA scenario where your buyer is getting an FHA loan, the deal is that your contract must be dated on the 91st day (or later) from your settlement date. In the past I have just provided a HUD to the underwriter to show that I closed well before the deed was recorded and all was well. And yes, they would not order the appraisal in advance of that date.
–Natalie