Posted on: 21st Dec, 2010 07:52 pm
Hi all,
I'm working on a arms-length opportunity on a short sale that where I had a backup offer. The first offer was accepted and I have since made a offer to the about to be owner of the short sale. Once I have posession (assuming I do) I'm needing to get some financing on it to pay back a short term loan used to close the deal. For conversation lets say the purchase prices is 300k (it's close to that). I want to pull out/finance 200k which would then be at a 30/60 ratio on equity. What rules do I have to navigate? I see at 90 day "seasoning" but it looks like that might be suspended - unfortunately the property is scheduled to close on Feb 15th 2010 so it will be expired by then anyway. The other I see is a 1 year waiting period before you can refi/HELOC on a newly purchased property.
In an ideal world I would like to have a dual close where I have financing on the property - but the 90 day seasoning and things like it's not yet in the new owners name seem to limit my ability to do that one.
Thanks for any suggestions/points
I'm working on a arms-length opportunity on a short sale that where I had a backup offer. The first offer was accepted and I have since made a offer to the about to be owner of the short sale. Once I have posession (assuming I do) I'm needing to get some financing on it to pay back a short term loan used to close the deal. For conversation lets say the purchase prices is 300k (it's close to that). I want to pull out/finance 200k which would then be at a 30/60 ratio on equity. What rules do I have to navigate? I see at 90 day "seasoning" but it looks like that might be suspended - unfortunately the property is scheduled to close on Feb 15th 2010 so it will be expired by then anyway. The other I see is a 1 year waiting period before you can refi/HELOC on a newly purchased property.
In an ideal world I would like to have a dual close where I have financing on the property - but the 90 day seasoning and things like it's not yet in the new owners name seem to limit my ability to do that one.
Thanks for any suggestions/points
First thanks for the validation. Does the seasoning rule also apply to cash offers or only financing? i.e. if you have a arms-length deal with the buyer, can they close a cash deal right away or will that potentially jeopardize the short sale transaction?
I guess seasoning requirements mainly apply for financing.