Buying a "corporate owned" property?

When you see a property listed as "corporate owned", most likely you are seeing a "flip" -- a property bought by investor(s), they usually do some work to it and resell it for a profit. FHA loans will not allow you to buy such property within 91 days of last closing. If you are buying it with a conventional loan (which traditionally doesn't have restriction on this), you need to double check with your lender if they will approve the sale.

We have heard recently that if the property is a flip, some lenders will not allow the profit to be over 15% if it's sold within 91 days from previous sale date. We are seeing more and more lenders get onto this bandwagon, and some have increase this 3-month period to 6 months.

So both buyers and investors need to be prepared.