FHA Wells Fargo Approval Verbiage Help

[Luiz Souza]

This is my problem:

" It's further understood this transaction may not involve any thrid party who received a deed from mortgagor at, prior to, OR AFTER SETTLEMENT, and the purchase contract may not be assigned"

What do you understand by "OR AFTER SETTLEMENT" mentioned above?
Have you seen this before?
Thoughts please!!!

Thank you

[Scott Hubbard]

Originally posted by Luiz Souza:

This is my problem:

" It's further understood this transaction may not involve any thrid party who received a deed from mortgagor at, prior to, OR AFTER SETTLEMENT, and the purchase contract may not be assigned"

What do you understand by "OR AFTER SETTLEMENT" mentioned above?
Have you seen this before?
Thoughts please!!!

Thank you

Did the seller put the title into someone elses name or in an entity? Land Trust or LLC?

If A sells to B then B to C were there are two seperate closings then the above does not come into play. However, if A transfer title into a trust, LLC, or other entity, then sells to B and B transfers interest to C (a Third Party), then you would be violating the above.

The purpose of the restriction is three fold.
1. It is meant to make sure B performs. 2. It keeps the chain of title intact. 3. Helps keep transaction arms length.

This is from my experience as well as legal advice I have received. However, you should check with your attorney before proceeding.