BoA has some of the most ridiculous loan overlays.

the foreclosed owner filed a lis pendens on the property after almost 2 months BOA canceled the escrow....

I don't have a prepayment fee since it's a traditional conventional mortgage through BoA. 

Big Banks, like BoA and Wells want you to wait 12 months instead like @Nasar Elarabi mentioned.

Does Chase prohibit this situation like BoA, or is this permissible?

Now, you can do the work, exclude me, and bring in Joe and Sue who may buy it from you at $265,000 and make 4% commission if it's BOA or 5% from someone else if your lucky.

Sounds to me like BOA will not accept your bid if you don't meet their prequalifications criteria.

Jon is totally right, I have to look it up but I think it reads that you INTEND to occupy the property.Sometimes your intentions change and with the economy the way if your intention was to live there when you got the loan and you got a job in a diffrent state then your intention has to change and the bank will probably not call the loan.That being said once you change your mailing address with BOA to mail your statements to a new address this will probably kick up a red flag that you don't live there before the insurance ever reaches them.We had a borrower we gave a loan, we found out less than a month later that the borrower had changed his mailing right after getting the loan which signals doesn't live in the property- they didnt call the loan.

BOA does not let listing agents purchase property..it kicks you right out of the system.

It is rare that a traditional lender like BoA would actually will own the note on a first mortgage.