Anti-Flip Clause

[Ayo F.]

So I have read in many places and discussed with many attorneys about the 30 - 90 day anti - flip requirement for short sale acceptance.

However, has anyone ever bothered to question the banks legality for requiring this?

Can a seller or anyone tell you what to do with what you "own?"The bank does not own the property. They only approve that the seller sell the property for less than what is owed. That's all.

Its like me buying a Mercedes Benz and the dealer telling me that I cannot drive it for 90 days or I cannot resell it to a willing buyer!

Who gave the banks the power to dictate what you can do with a property that you own?

The only reason I haven't done it is that I haven't found a title company that will close such deals.

By the way, its not a fraud unless you used deceptive means in getting the lower price.

However, if the bank accepts a price and I find someone a week later who is willing to pay considerably more for whatever reason, then thats fraud? Just cos they lost some money.

I'm so happy for the foreclosure settlement deal. They can defraud everyone (the whole mortgage crisis, predatory lending, stated incomes to qualify people for loans, robo -signing, mortgage back security frauds e.t.c) and it all good as long as they are making money?

I say it is not legal for the bank to tell anyone what they can do with their property or how much they can sell if for.....

It would be nice to have some discussion around this by anyone ......

[Chris Calabrese]

Yes, a seller can put a deed restriction on a property, and that is perfectly legal in the real estate world, as long as they make you sign and agree to it before.. Current Fannie Mae, and maybe some others, put a 90-day deed restriction on a property when you buy it where you can't sell for more than 120% of what you paid. The restriction gets recorded along with the deed so that the property can't be conveyed. If you don't agree to it in the contract, I don't think they can sneak it in on you at closing.

It's similar to how conservation easements are created. You can also do them for property use, i.e. a church selling land but requiring it not be used for gambling, a liquor store, etc.