Is There Any Way Around Title Seasoning When Buying REO Properties?
I am closing on my first REO property at the end of this month and man would I really just like to sell it and make my nice profit quickly. What's the worst that can happen? There of course would be a penalty, but what else? Would I be placed on a "don't loan to" list because I violated title seasoning. Or, would a buyer's lender not loan them money because I haven't held title long enough?
I'm one of those impatient, NOW, NOW, NOW type of people.
Never learned delayed gratification 
Quinn 
Quinn,
Did you buy it as an owner-occupied or non-owner occupied?
Quinn,
title seasoning refers to how long the seller has held title. In your case, that would be you.
REO purchases usually get a special tag since they were bought as "distressed properties" (not a retail sale). However, this won't do away with the seasoning requirements at all.
Your best bet is to find a good mortgage broker that has some lenders that will do limited or no seasoning refi's so that when you find a buyer, you've already got their loan lined up.
Roger
I think that it would just be hard to have your new buyer obtain a mortage. HUD insured mortgages require seasoning of 90 days and its easiest after 1 year. However, with today's mortgage business, most people should be able to go conventional (ie no problem).
Quinn,
I am able to loan on the property without seasoning. The buyer will not be able to go FHA, but I can do conventional all day long. Your best bet is to find someone with less than perfect credit to buy it. Lenders that cater to this group are less likely to care about seasoning. My concern is for you. Make sure you double check your pre-payment penalties to make sure you aren't raped by then. Second, I hope it's not an owner-occupied loan because you could run into trouble on your next loan.
Hi quinn,
I buy preforeclosure all day long. I clean them up and list them with a realtor right way. I dont ever have issues with seasoning! My properties are SOLD and cash in hand in 60-90 days!
If you have a buyer who wants to buy your house, and lender that has a seasoning issue, help your buyer locate a NEW lender that does not have a seasoning requirement!
There are so many loan programs out there, it will blow your mind. The best advice that I can give you is to stay away from FHA borrowers. Help them get into another loan program!
Best of Success!
BAMZ
[addsig]
I'm going non ower occupied.
So, since this was an REO property and gets a different "label" so to speak, would I be able to sell right away.
I heard that FHA have really strict qualifying requirements? That most people end up going conventional, is that true?
I'll have to talk to my broker and check what the penalties are, but do you guys think that selling and paying the penalties, if they are small, woud be worth it if I just wanted my money out?
Quinn
I would need more numbers to give you any suggestions. If your just starting out though, it's always good to have more capital behind you when looking at perspective deals.
Hi Quinn,
There may not be any pre-payment penalties. You should always verify that before you sign for your next loan.
When it comes to seasoning, an REO would fall in the same category as a preforeclosure, FSBO, etc. Seasoning is seasoning!
What I was trying to explain to you was that before you accept an offer, make sure that the buyers lender doesnt have issue with seasoning. If they do, help your buyer find a new loan program or a new lender. The dont care who they use, just as long as they can buy the house that they fell in love with!
FHA doesn't have strict qualifying requirements, but they are not investor friendly. Remember what I told you, there are TONS of other loan programs available for your buyer that can do the same thing for them as they perceive and FHA loan could do!
Best of Success!
BAMZ
[addsig]
Thanks guys, you are the absolute greatest.
Quinn
Seasoning should not be a problem. I have had a title company question what I did to increase a property's value by $80,000 in 4 months, though the mortgage co did not have a problem with it. We had to change title co's, which delayed the closing, but in the end, all was good.
In other words, if you find a road block, try to overcome it. If it is too much of a pain, go around it. If seasoning is a issue, just like someone above said, help them find another broker, who will help them buy the house that you want to sell!
There are two lenders I work with that lend on the appraisal price and will also give you cash back on a refinance, one day following the purchase of the property. It is a true non seasoned program
Hi, I'm a very newbie here. and have several questions regarding this convo. What is this seasoning you are talking about? Would you share the lenders you use with the rest of us? Also how long do you have to live in a house with an owner-occupied loan. Say you live there 1 year and want to move can you rent it? Where do you find the rules on those kind of things? Thanks Loads!! Szukac
moneymanlends, who are those lenders you use in Atlanta (specifically the bank, not the broker)? Thanks...