mortgage and deed different names

[rubaiyat]

What is the name of your state? Florida

I am buying a house where an investor has owned since august. My bank tells me that there is a Federal law that says you have to own for more than 5 months or else it is considered flipping. Is this because the name on the warranty deed is not the name on the mortgage?

 

[Rhubarb297]

What is the name of your state? Florida

I am buying a house where an investor has owned since august. My bank tells me that there is a Federal law that says you have to own for more than 5 months or else it is considered flipping. Is this because the name on the warranty deed is not the name on the mortgage?

The rules regarding flipping are too complicated to explain here. Flipping isn't per se illegal, but rather it is evidence that there might be illegality (like fraudulent appraisals) involved.

And there is no law you have to own a property more than five months to sell it. The bank however can impose whatever rules it wants. Some have imposed rules like this to protect themselves from transactions that might later turn out to be fraudulent.

I'm not sure how what the name on the warranty deed not being the same as on the mortgage has to do with it. I suppose it possibly could be evidence someone was defrauded. I know lenders in Indiana insist that the name on the mortgage match the names on the deed.