Home Buying in Whittier>Question Details

Phil.Exito, Home Buyer in 92108

Can I flip a Bank of America short sale? I should be closing in a couple of weeks. The property is in Los Angeles, CA.

Asked by Phil.Exito, 92108 Thu Jun 13, 2013

My agent mentioned that I may not be able to flip the property on a Bank of America short sale. He called the short sale dept and they told him to consult with an attorney. Why wouldn't they just tell him yes or no? The contract addendum states #8. "Buyer agrees that property cannot be sold or otherwise transferred within 30 days of closing." Then there's another part that says #10. "The parties acknowledge and agree that this short sale transaction will not constitute appraisal fraud, flipping, identity theft and/or straw buying.
So which one is it? Thanks for your help.

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Answers

8
I would consult legal advice before you proceed. I definitely would not sell it for 30 days.
1 vote Thank Flag Link Fri Jun 14, 2013
I would recommend checking the documents they had you sign when they approved short sale. Normally any and all restrictions would be listed there.
0 votes Thank Flag Link Tue Oct 29, 2013
I would consult a real estate attorney
0 votes Thank Flag Link Wed Oct 16, 2013
The best answer for this question is to consult with an attorney. The language under section # 8 would definately not allow for you to sell this property any sooner than 30 days. After that, the issue is what would constitute a flip and how soon after the initial 30 days could you do that legally.

If you want a broader opinion from me, please feel free to contact me directly.

Jorge Granados
DRE # 01323782
0 votes Thank Flag Link Thu Jun 20, 2013
Just wait the 30 days. Seriously, your 'end buyer' who's going to pay the highest possible amount for the property is going to be a buyer who needs to get a loan. And that buyer is going to need a 30 day escrow anyway.

So, there you go, problem solved.

I can also tell you which financed buyer will pay the most. Shoot me an email directly if you'd like to talk about this further, I don't look back on this same Trulia posting for answers after mine.

Emily S. Knell
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
0 votes Thank Flag Link Fri Jun 14, 2013
In my opinion, both apply. If you purchase the property and make significant improvements then flip the property after 30 days, I would say you are OK. If you purchase the property make NO improvements then make enough to flip in 31 days, I would think you could be questioned on the appraisal issue. I agree you should get legal advice.
Good luck,
0 votes Thank Flag Link Thu Jun 13, 2013
I guess it would depend on the legal definition of FLIP and what timeframe is contained therein. What does your agent say? I would say the 30 days should cover you, BUT if you are unsure, by all means contact an attorney...

​Sinead McAllister-Clifford
Real Estate Broker/ Realtor®

McAllister Homes Real Estate
Residential Sales & Property Management
http://www.McAllisterHomes.com
License 01366009
858-205-5215 CELL
info@mcallisterhomes.com EMAIL
0 votes Thank Flag Link Thu Jun 13, 2013
Thank you!
Flag Thu Jun 13, 2013
Best answer is...consult your attorney.
0 votes Thank Flag Link Thu Jun 13, 2013
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