If you are selling your home as a short sale and it needs work you may get one or more offers from flippers. These can be contractors or investors who want to buy your home at a discount, fix it up, and then resell it for a profit. I do not believe there is anything unethical about this, and in fact I used to flip homes myself, but that was a different market.
However, there are many banks who disagree and often will put limits on the minimum time a home must be held before they will lend on it for the next buyer. That is an issue for the buyer of your short sale. As a seller there is a more important issue for you. Some banks will make a buyer sign a notarized document promising not to resell the home for a minimum of 90 and up to 180 days after the purchase. If you accept an offer from a flipper it is a good idea to find out ahead of time if your lender has a policy about minimum holding times after close of escrow. there is no point in taking your home off the market for 4-12 weeks and then get a notice from your lender that the buyer needs to hold the property for longer than they want. If this happens the buyer will walk, and you will need to start over again.
If you have any questions about short sales in San Mateo or Santa Clara Counties please feel free to contact me.
Marcy Moyer C.D.P.E.
marcy@marcymoyer.com
650-619-9285
Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales
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