Fannie Mae Auction Property Flip Restriction

[Tony Nguyen]

I just got an offer accepted by Fannie Mae. We bought the property @ REDC. The purchase price is 84k, ARV is 140k. There is a clause in the contract that says I cannot resale for more than 100k within the first 90 days of obtaining title. The situation is that they don't say what the penalty is if I were to do sell it within the first 90 days.

When buying properties as REOs from the MLS, theres a FM addendum stating that if you sell within the first 90 days, there's a $5,000 penalty. I would be more than happy to pay the 5k but the contract I currently have with the REDC property doesn't say anything about it.

Any of you guys ran into this yet? How'd you get around it? Would love some feedback. Will also keep you guys posted as to what happens.