Recently, I have been approached with buyer purchasing homes where investor are purchasing existing property, then immediately reselling it for a profit. Florida property flips are not illegal unless the transaction includes an act of fraud or misrepresentation such as inflated appraised value. Since AMC ( appraisal management companies) now are a third party company that orders the appraisal for the buyer, it now makes this scenario not as likely. Cash purchase transactions could be a little bit more of a sticky situation for the likelihood of fraud.
Florida Property Flip Transactions most often, but no always, involve distressed properties acquired at a discounted price, then resold at an increased sales price to an unknowing buyer.
Florida Property Flip Transaction lenders have recently been aware of such cases and have issued new guidelines to ensure that every deal is underwritten with caution. Please make sure to tell your loan officer if the home was recently sold well below value and you are now purchasing at market value.
This does not mean you cannot get a mortgage but it is critical for us to know in the beginning.
Best Regards,
Core Mortgage Financial
No comments:
Post a Comment