I just wrote an offer for an investor on a Fannie Mae property. In the addendum it says that if this is a non-owner occupied, then they cannot resell the property for 3 months for more than 120% of purchase price. This isn't really a problem because it will take a month to rehab, then find a buyer and close. He'd probably have it 3 months anyway but he didn't like it at all. I've never seen this on a Fannie Mae owned property before. The selling agent said they are trying to stop fraudulent flipping but I really don't think this little 3 month rule is going to do much of anything. What do you think?

I had the same thing on one I sold to my investor. I can see their(Fannie Mae's) point if no repairs were being done but I don't think it is fair when the buyers rehab the property from top to bottom. He kept it as a rental so he really didn't care on this one but if he had been wanting to rehab the property he would have passed on it because of that clause.

I wouldn't worry about their "restrictive fix" myself, especially since it will take a while to rehab, list and resell. If you are lucky enough to have a buyer ASAP when it's first listed, just inform the buyers' agent that it will be available to close on or before X date. Three months is nothing in the REO world, just assure your buyer and future seller of that.