Flipping HUD, Fannie & Freddy foreclosures

[Giovanni Cortorreal]

Hello Folks,

I was talking to an "investor friendly" title company who informed me that HUD, Fannie & Freddy do not allow their foreclosed properties to be wholesaled; specifically mentioned was the use of the double closing strategy. They also mentioned some affidavit that has to be filled out at closing which prevents the buyer (flippers) from wholesaling these properties.

Has anyone ever heard of such restrictions?

Thanks in advance for your courteous answers.

Gio