Assigning or double closing with mortgage?

Bird Dogs, Wholesaling
1

I have many deals coming in and can’t handle all of them so I would like to figure out a way to pass them to end buyers. I would like the end buyer to be able to get a mortgage, is this possible with an assignment or double closing?

The problem I see with assigning is. Does the bank ask to see the contract? Will they not like that it was assigned to them? Also if the purchase price is $140,000 and it is appraised at $160,000 would they be able to get a mortgage for $160,000 so that the $20k in assignment fees is part of the mortgage and not the end buyer’s cash? Or will the bank only allow a mortgage based on the purchase price?

For a simultaneous/double closing, how do people get mortgages for the end buyers? I would assume that they would do a title search and see that the deed doesn’t have my name on it but instead it has the current homeowners so they might not be willing to give a mortgage to the end buyer?

Any help or suggestions would be much appreciated.

2

Yes, the lender looks at the contract. The best scenario would be if you could double close. The issue of you not being on title is usually if your buyer is not an A credit buyer.

3

Also, what if the contract was assigned to the end buyer and he paid the assignment fee outside of the closing in cash… could he then finance the transaction with a mortgage if he showed the assignment contract to the mortgage company even though he isn’t on the actual contract?