So I write something like 15-20 offers a week on properties for investors.. Of which we get 2-3 per month under contract… Most of my offers are foreclosures or REO properties. It never ceases to amaze me how stupid their “restrictions” are, or the things that will show up on counter offers.
All of the stuff is ALWAYS in the banks favor. If you need to postpone closing, they charge you $100 p/day, but if they need to postpone closing, they owe you nothing. They wont pay any title fees that a normal seller would. They wont pay for remediation if wood destroying insects are found. Lots of goofy stuff like that.
Anyways, I got a counter yesterday and although I shouldn’t be surprised, it did make me laugh…
Fannie Mae does suck SUCH a good job at running their own business, now they are going to tell me how to run mine?!?
Below is the restriction they put on a counter offer I received this morning.
6) Deed restriction applies to non-owner occupied purchases. Buyer is restricted from selling/encumbering property for more than 120% of purchase price for a period of 3 months from date of close.
hahaha How the heck do they expect to enforce this? The house in question has EXTENSIVE damage and will require EXTENSIVE cash to fix.. and yet if we go with the letter of the law here.. even though I may put 3 TIMES the amount of money into repairing the house that I purchased the house for.. I can’t sell it for 3 months.. hahaha So my offer on the house in question was $8000. It needs probably $30,000 in repairs. Yet, If I want to sell it in under 90 days, i cant ask for more than $9600?!?!? yeah.. whatever…
When you really look at the facts though.. It really is a non-issue because the house needs so much work, and in this market doing the repairs needed and “selling” it in 3 months would be like winning the lottery, but the audacity for them to tell me how i can run my own business?!?! hahaha
As a matter of principle I will counter and tell them to stick that restriction where the sun don’t shine.. Well, I won’t use those exact words, but you get my point…
And people wonder why the banks are in trouble… That is a pretty ridiculous clause to place on a sale… What would prompt them to even think that’s a valid thing to ask for?
How’d the counter go?