When Can I Re-Sell My Foreclosure?

I got an interesting question today on The Coconut regarding foreclosures.  The question was “how long is the seasoning period for reselling a foreclosure.”  In other words, after you purchase a foreclosure is there a restriction on when you can re-sell it?

When I read this question I wondered if it was an indication that investors were re-entering the market.  Only time will tell, but I must say that getting this question was very refreshing.

Flippers are you out there?

Gymnist Flipping

After talking to JamesVenney (private mortgage banker and author of Juicy Estates) I found out that there is no restriction on when you can resell a foreclosure after purchasing it.  If the new buyer is a cash buyer, you can sell it the next day.  If the new buyer is not a cash buyer, you may run into a problem with the new buyer’s lender.  FHA guidelines require an owner to have the title at least 90 days before they will finance a new purchase of a foreclosure.  

As with any quick re-sell, there may be ramifications with your lender if you have pruchased a loan that has a prepayment penalty. 

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