90 day no flip affidavit

[Duane Ortega]

Hi everyone, just wondering if anyone has seen this 90-day no flip affidavit and what they are doing about it.

Thanks for any and all feedback,
Duane.

"Property flips occur when ownership of one property changes several times in a brief period of time. Property flipping becomes
illegal and a fraud for profit scheme when a home is purchased and resold within a short time frame at an artificially inflated
value. For the purposes of this statement, a short time frame is defined as a period extending ninety (90) days from the date of
the short sale transaction.
BUYER represents, along with BUYER real estate agent, that I/WE are not involved in a for profit scheme to flip the property and
that there are no current agreements, written or otherwise, to immediately re-sell the Property at a higher price, and that no
transactions of this nature will take place within ninety (90) days of the date of closing on the short sale transaction.
I/WE represent that there are no relationships between any parties involved in the transaction, including BUYER, SELLER,
FINANCING COMPANY OR INSTITUTION, NEGOTIATOR, or REAL ESTATE AGENT.
I/WE understand that any information associated with the short sale, may be made available to federal, state, and/or local law
enforcement agencies for such action within their jurisdiction as they deem appropriate if illegality related to this short sale is
discovered."

[Will Barnard]

Originally posted by Donovan R.:

Wish I could, I don't have a buyer yet. This one is not going well :(

Your first mistake was locking up a property without having a large enough buyers list to have a buyer quickly. If you did, you could have made the offer in the name of a trust (I use the street name/address Trust - as the name) then you have time to form the trust after it is under contract and name your buyer as the bene at that time.

Mistake number two is that by not performing, you will likely damage the relationship between you and the list agent as well as potentially be named in the Wells Fargo black list - banks do flag those who do not perform or do other things they don't like, so if and when you make an offer on another, you may be flagged and as such, your offer ignored or not accepted.

Learning experience for you.