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Can a Private Individual Buy a Bank Owned Property Loan Hoping To Flip a House?

February 13th, 2013 · 2 Comments

I don’t know the answer…yet.

Had a call from someone who claims he wants to purchase a home in Cleveland by buying the loan from the mortgage holder.  Then he wants to flip the house (sell it immediately) without worrying about seeing it or fixing or improving it.

This call pissed me off on many levels. He wanted me to give him an analysis of what homes were worth in this particular area of Cleveland.  Then tell him what the sale price point could be after he owned it.  I said ‘do you plan on improving it?’ He said ‘no, just sell it immediately.’

First of all, I wouldn’t help someone do this – it certainly does not help the neighborhood.

Secondly, are mortgage holders really doing this, and why?  To avoid having to fix it up first ?

I haven’t been able to find any info, yet, on whether this is legal but I have a few calls out.

Seems to me that no matter what history should teach us about loans, home selling and neighborhood property values, there is always someone who wants to circumvent proper means in order to make a few bucks. In this case, could be both a lender and a private individual.

Bah humbug.

3C

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Tags: Cleveland Home Sales · Cleveland Real Estate

2 responses so far ↓

  • 1 Ben // May 3, 2013 at 12:20 pm

    Not ususally. Most banks (I don’t know of one that does not) require a 90 day holding period before a re-sale. The buyer is not required to do anything to the property, except hold it.

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