You would think I would know this being both an agent, and the owner of several previous foreclosures...but how long does Fannie & Freddie place on the deed restriction before you can sell a foreclosure they owned?

@J Scott Now that you mention it, I think I was wrong. I saw it years ago, then stopped seeing it. I think I confused it with the "work around" guys were using here for the "no transfer/mtg for more than 120% within 90 days". What they do, is immediately transfer it for the same price they paid, to a sister/other LLC. That eliminated the "120% restriction" which was Specific To That Buyer, it didn't apply to the "new" related LLC, so that LLC could resell for whatever they wanted. The recent change I saw in the deed restriction is that "it runs with the title and isn't limited to the initial buyer for 90 days. I'm guessing this was in reaction to the "work around" becoming more popular. I was thinking, well this eliminates the work around, similar to the absolute resell prohibition.

Wayne - Is the "no sale for 30 days" a new addition to the addendum? I haven't purchased a Fannie REO for over a year, and I don't remember that being a stipulation last time I did...

Fannie/Freddie: no sale for 30 days, no sale/mtg. for more than 120% of purchase price for 90 days.

@Russell Brazil Are you talking about a bank owned REO? or a true foreclosure purchased at the courthouse steps?Foreclosure purchased at a Trustee Sale you can sell the next day.REO, next day.HUD, Homepath or Homesteps property may be subject to some sort of a deed restriction besides owner occupant purchaser. May not. Check your Lender documents / counter offer from bank. If it doesn't spell out any restrictions, then there aren't any.

I thought it was 90 days. Thanks!

Last I heard, there was a 90 day restriction on selling a foreclosure property - or any property for that matter - if it was sold for more than the purchase price. I hope that helps answer your question.

How Long Before You Can Sell a Foreclosure?How Long Before You Can Sell a Foreclosure?

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