Quit Claim deed after Signed contract

**newpb** · 12-02-2008, 02:50 PM

Myself and a seller signed a contract to purchase a property here in Palm Beach on November 15, 2008 to close on this December 10. But I have recently found out that this seller did a quit claim deed handing the property over to his corporation on November 21, 2008. Which makes the initial contract invalid. Not only is the contract invalid but I am not able to get a FHA loan or any loan for that matter approved for this property since it is < than 90 days the deed of the property has been transferred.

So to my questions are Is this legal for the seller to do after a signed contract is in place? and Is there any other way this transaction can be completed in < 90 days besides paying cash for this property?

Thank you any help would be greatly appreciated.

**agentsranking** · 12-02-2008, 07:27 PM

I would suggest working with a local bank to finance the deal. Although I can't speak to your location I do deals in Minneapolis and there are a number of local banks here that could care less when the deed to the property was transferred. My second thought is if you must get FHA financing and the requirement is a 90 day seasoning why not just push the closing out 90 days? I'm sure the seller would oblige based on the fact that he created the situation.

I won't speak to the legality of the situation since I'm not sure however it was definitely improper.

**Mike Taylor** · 12-03-2008, 02:20 AM

Is this a corporate relo situation? If so, this happens all the time and is no big deal. If you are referring the 90 day rule for flipping with FHA, this has been "temporarily" suspended. You should have no problems.

**newpb** · 12-03-2008, 06:15 AM

This is not a relocation. The seller bought this foreclose property and has renovated it since the time of purchase.

**FourtyTwo** · 12-11-2008, 07:34 PM

You may want to look into Fannie or Freddie loans. Last I knew, they didn't have any seasoning requirements.

If you run into the worst case scenario and you can't get around seasoning but you need to be in before 90 days, ask to talk to underwriting. There are instances where you can get around seasoning issues by providing additional documentation, but typical customer service reps wouldn't know much about that, so you'd want to go strait to UW for the details.