Saturday, July 19, 2008

Some Excerpts on SHort Sales, FNMA, & Flips

Due to the credit crisis and short sale crack down in the banking industry, FNMA title companies and short sale attorneys are quickly moving away from flips and flipping transactions.

Some Florida mortgage pros areas may not yet be affected by short sales but they will be soon throughout Florida and FNMA flipping geography. Seasoning issues on a FNMA flip will also be looked at with a much keener eye so you will need to consider that as well as the FNMA Flipping rules. Some Florida flips are still using trusts with a $1 consideration when needed, but I am not sure who does teh short sale of real estate and flip that way. Since they can determine the sales price by backing into it with the Florida conveyance tax, that seems to me to be a short sale problem.

Here is just one letter sent out by a FNMA short sale title company. (I have heard this same thing from a number of sources.) Please take this as someone trying to help you (and others) stay out of trouble, not trying to tell people what they are doing is wrong.


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