Fannie Mae foreclosure purchase?
I am in the process of purchasing a foreclosure home that is owned by Fannie Mae. They have an item listed in their addendum that states the following:
"Grantee herein shall be prohibited from conveying captioned property to a bonafide purchaser for value for a sales price of greater than 0,000 for a period of 3 months from the date of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the principal amount of greater that 0,000 for a period of 3 motnhs from the date of this deed. This restriction shall terminate immediately upon conveyance at any forclosure sale related to a mortgage or deed of trust. "
Can anyone explain this to me and put this in plain english terms. The home is in Texas if that makes any difference. Is there anyway around this clause?
From my interpretation, sounds like it saying that you cannot sell the property for more than $150k before 3 months of the purchase and you cannot mortgage the property for more than $150k before 3 months. It is put into place to discourage "flipping" the house. I would advise speaking with an attorney for a exact interpretation.
Comment by dan a — July 14, 2009 @ 2:42 pm