Can I assign a contract or wholesale/flip a house bided in HUD or REO forclosure sale to another investor/buyer?
Thanks
Cathy
Cathy,
Yes, you can assign any contract to any person or entity you want unless the contact states that you can’t.
The contract should not read “Cathy and or assigns” as the buyer because that will give you away as a beginner and most banks or HUD won’t accept it.
HUD homes are a different animal in many ways. HUD bids require you to use a HUD Sales Contract which is significantly different than a TAR or TREC promulgated contract form. In order to assign a HUD contract, the seller (HUD) must approve of the assignment. When you sign the HUD contract form, you are agreeing to abide by the “Conditions of Sale”, and that is one of their conditions. Be careful not to bid on a HUD home as an owner/occupant and then try to assign to an investor who has no intention of occupying! Good Luck.