GMAC No Flip Addendum is comical but not funny and really quite interesting. A variation of the below has been circulating lately. In a relatively short document, there are so many issues raised. First, GMAC is defining what a "flip" is. There is no uniform or legal definition, so let's call it what it is: an opinion only.
Second, what is "inflated" value? If I buy a blow up Elvis impersonator on Ebay for $100 and sell it for $102 that is "inflated" value! LOL
Third, in real estate, buying and reselling is NOT a short period of time. Thirty days, maybe, but certainly not 90 days.
Fourth, buyer and buyer agent are not involved in a "scheme". Hmmm, so a well thought out business plan is certainly not a scheme. I checked with Batman. Again the "F" word...flip! LOL Flip is not a legal definition, so what is their point.
I could go on and on...this Addendum is ludicrous.
If I were a buyer agent, I would refuse to sign this or modify it to state that you are unaware of buyer's future plans with the property. The bottom line is that if I were a buyer or buyer agent, I would have TREMENDOUS problems with this. Don't sign it and provide valid reason.
Welcome to America...where even buyers are no longer entitled to a profit...or to pray at the 9/11 site..unless you are Muslim. they go to pray near there, but the vast mnajority of Americans cannot. Thanks Bloomberg. Nice financial reporting systems but poor excuse for an American.
State of CA
County of SAN BERNARDINO
Property flips occur when ownership of one property changes several times in a brief period of time. Property flipping becomes
illegal and a fraud for profit scheme when a home is purchased and resold within a short time frame at an artificially inflated
value. For the purposes of this statement, a short time frame is defined as a period extending ninety (90) days from the date of
the short sale transaction.
BUYER represents, along with BUYER real estate agent, that I/WE are not involved in a for profit scheme to flip the property and
that there are no current agreements, written or otherwise, to immediately re-sell the Property at a higher price, and that no
transactions of this nature will take place within ninety (90) days of the date of closing on the short sale transaction.
I/WE represent that there are no relationships between any parties involved in the transaction, including BUYER, SELLER,
FINANCING COMPANY OR INSTITUTION, NEGOTIATOR, or REAL ESTATE AGENT.
I/WE understand that any information associated with the short sale, may be made available to federal, state, and/or local law
enforcement agencies for such action within their jurisdiction as they deem appropriate if illegality related to this short sale is
FINANCING PARTY'S Agent
Subscribed and sworn to before me this ____________day of ____________, 20____
My commission expires: ______________
Paddy Deighan, Esq. PhD http://www.homesavers.pro