Unfortunately, most of the time you cannot use assignments on foreclosures.
I just had the same problem on a foreclosure that I put under contract. The buyer wanted me to assign the contract to him because he did not want another name on the chain of title. I nearly lost the deal, but he decided to go ahead and buy the property from me even though I could not assign it to him and let him close on my contract.
I have done a few assignments on foreclosures, so it is not totally out of the question - but very unlikely. You just have to ask. Every now and again you will get a bank rep who doesn't care, but Very Rarely! I would go at it thinking you will not be able to assign the contract.
One way to circumvent the assignment problem when buying REO's is to put REO's under contract in an LLC and then sell the LLC to an end buyer. This way to avoid the non-assignment clause takes a little up front work but this is a good strategy.
Another way to go if assigning the contract is out of the question is to find an attorney that will do a double closing. You can also have a hard money lender set up so that you would be able to fund the deal for the flip. I do this all the time now. I have a lot of guys who will lend me hard money, even though I hate paying the price for borrowing. Sometimes it is a grand just to borrow the money for an hour, but if I can pay 1k to make 5-10k or higher I will do that all day long.
If you are sure the house will sell, and sell fast, then do what I do and put your earnest money down. Get 30 days to close (unless they offer you a super deal if you would close faster) and start marketing it, try to sell it immediately. If you think you have buyers for the property, don't let anything stop you from making an offer. - 16003
I just had the same problem on a foreclosure that I put under contract. The buyer wanted me to assign the contract to him because he did not want another name on the chain of title. I nearly lost the deal, but he decided to go ahead and buy the property from me even though I could not assign it to him and let him close on my contract.
I have done a few assignments on foreclosures, so it is not totally out of the question - but very unlikely. You just have to ask. Every now and again you will get a bank rep who doesn't care, but Very Rarely! I would go at it thinking you will not be able to assign the contract.
One way to circumvent the assignment problem when buying REO's is to put REO's under contract in an LLC and then sell the LLC to an end buyer. This way to avoid the non-assignment clause takes a little up front work but this is a good strategy.
Another way to go if assigning the contract is out of the question is to find an attorney that will do a double closing. You can also have a hard money lender set up so that you would be able to fund the deal for the flip. I do this all the time now. I have a lot of guys who will lend me hard money, even though I hate paying the price for borrowing. Sometimes it is a grand just to borrow the money for an hour, but if I can pay 1k to make 5-10k or higher I will do that all day long.
If you are sure the house will sell, and sell fast, then do what I do and put your earnest money down. Get 30 days to close (unless they offer you a super deal if you would close faster) and start marketing it, try to sell it immediately. If you think you have buyers for the property, don't let anything stop you from making an offer. - 16003
About the Author:
The author, Jesse Davis is an experienced wholesaler in the Jackson, Mississippi, Real Estate market. He has wholesaled over 80 properties this year alone, and he teaches a seminar on how to really be successful in today's market. Click here to learn how to find all the buyers you will ever need to build a massive monthly income in Real Estate today
