19-Oct-2009

Fannie Mae has begun requiring agents who market its REO to include provisions in sales contract that certain anti-flip language will be included in deeds.

The language that will be included is as follows: (This language may vary)

Grantee (Buyer) herein shall be prohibited from conveying subject property to a bonafide purchaser for value for a sales price of greater than ($ _________= 120% of sales price that Buyer purchased property for) for a period of one hundred and eighty (180) days from the date of this deed. Grantee (Buyer) shall also be prohibited from encumbering subject property with a security interest in the amount greater than ($ ________ = 120% of sales price that Buyer purchased property for) for a period of one hundred and eighty (180) days from the date of this deed. These restrictions shall run with the land and are not personal to grantee.

This above language shall be included in the Warranty Deed that the Buyer is given at closing. This is the Buyer that purchased the REO property.