Title seasoning

[Mark Yuschak]

I recently bought a HUD house to flip. I bought it in my own name and will quit claim deed it over to my s-corp. I've been doing it this way lately becuase HUD doesn't seem too interested in selling their properties to investors who buy in the name of their companies. It's really weird - if you submit the same bid without a company name, yet still being declared as an investor, they're more apt to take the bid. I don't get it, but that's what I roll with...

In the past it was never a big deal to QCD the property to my s-corp after the initial deed was recorded since I was reselling them on land contract. For this house I know I won't be offering a land contract. That being said, the title will need to have 90 days of seasoning, but in which name? I'm assuming the name of my company since that will be the seller.

My issue is that the County takes FOREVER to record deeds when there's a transfer tax to be paid before recording. Since it was a HUD the closing company would not let me hand deliver the transfer tax check, then record the deed. The County treasurer is about 4 weeks behind with accepting transfer tax payments. :roll: That holds up the process of the original deed being recorded, and ultimately when I can record the QCD. I completed the QCD and had it notarized the day after I bought the property. Just hasn't been recorded.

So, when it does get recorded, the seasoning start from 90 days of the date on the QCD or 90 days from when it was recorded? My flip will likely be completed before the QCD can even be recorded.