REO Double-Close and title seasoning? - Posted by Joe (Oh)

import · October 15, 2003, 9:28am

Posted by Randy (SD) on October 15, 2003 at 10:52:00:

First of all you need to understand that most REO property owned by a bank and listed through a realtor will be marketed at 85% LTV. The title seasoning issue is only an issue if you are going for an F. H. A. insured mortgage. The title seasoning issues and contract assignment clauses are dependent on the buyer?s lender’s criteria not the selling bank. If your buyer is paying cash or has a lender that does not care it?s not an issue.

import · October 15, 2003, 9:28am

Posted by Joe (Oh) on October 15, 2003 at 09:28:51:

If I get a house under contract from a realtor, and the bank that owns the house has title seasoning policies, would that affect me doing a double-close (cause of the chain of title thing)?

I guess I would just simply assign the contract, but I know many bank realtors have ‘no assignment allowed’ clauses in there agreements. if so, how do I get around it

Thanx-

import · October 17, 2003, 10:12pm

Re: REO Double-Close and title seasoning? - Posted by jasonrei

Posted by jasonrei on October 17, 2003 at 22:12:44:

The bank’s title seasoning policies have no impact when you are buying from them.
I think the sellers have those clauses because so many flippers tie a property up, and don’t follow through, causing much frustration and lost money to the seller. If it came down to it, and 4 days from closing they find themselves with a warranty deed made out to a different buyer from the one on the contract, my bet is most sellers would go through with the sale. Not all, but most. Just remember that they CAN back out.
When you go to sell, it’s not true that only FHA loans have title seasoning guidelines or requirements. In the past year I’ve had conventional sales fall through ONLY because of seasoning. I used to give PREFERENCE to FHA buyers because conventionals were too strict. FHA only recently changed their guidelines, so now I’m back to conventional. But don’t let anyone tell you conventional loans don’t have seasoning requirements, not even mortgage brokers who claim to know it all. Every time I had one fall through, the mortgage broker was shocked. More and more of them are getting educated.

import · October 15, 2003, 1:04pm

Re: REO Double-Close and title seasoning? - Posted by Chris

Posted by Chris on October 15, 2003 at 13:04:56:

Our realtor just crosses it off. But FHA and a number of banks won’t work with contracts that have been assigned.