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Updated about 15 years ago,

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6
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B Cory
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6
Posts

Short Sale Approval Clarification

B Cory
Posted

Someone brought some language used by lenders to my attention. I hadn't noticed it before, but now that I look back, I see it in a couple of my approvals. I know a lot of investors use the Trust Method of flipping, deeding the property into a trust. Do these clauses affect that? Please give me your take on the language.

Wells Fargo: "It is further understood this transaction may not involve any third party who received a deed from mortgagor at, prior to, or after settlement."

GMAC: "This transaction may not involve a third party who receives a deed prior to this closing or after after this closing and before recording of the deed to the purchaser."

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