When a home has been purchased
by an investor, LLC or otherwise and attempting to resale property after
improvements have been made. Ensure a min. of
91 days has lapsed from the day of recording and the day the case # is ordered.
Less than 91 days is viewed as a flip and loan will be declined until seasoning
requirement is met. Even if the 91 day min has been met.
If the underwriter views the increase of the new sales price as excessive,
he/she may request a second appraisal and invoice receipts validating the
increased sales price. To remove all flipping concerns, allow 6 months
seasoning prior to re-sale of property. If less than 6 months you can still get
the deal done, but be prepared to provide additional collateral information if called
upon.
Jerry Alexander
DE Underwriter
Gateway Mortgage Group
1/27/2010
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