I am a foreclosure investing newbie in Tucson, AZ and had a question in regards to assigning the contract on a foreclosure: How do I convince somebody in preforeclosure to get in to contract with me, allowing a good amount of time for closing (3 or 4 weeks) in order for me to assign it to somebody else? After that much time has gone by, his credit and debt is sure to only have worsened. Any thoughts or advice would be greatly appreciated.
I’m also a newbie, but I’ll respond according to what I’ve been able to get out of other posts.
Yes, you are able to assign the contract. Basically, what you do is negotiate with the lender, and once they tell you it has been approved, you will ask them to put the name of your assignee on the approval letter. The way you do this, is you fill out an assignment form, and on this form you are basically saying that the other person takes over the contract for a fee (your fee) stipulated on the contract.
Greg, the only part I’m not clear on, is if you can only assign contract to “all cash buyers”. If a buyer needs a conventional loan, this can take approx. 30 days and my understanding was that the banks wanted their money fast.
I’d also appreciate clarification from someone else. thx.
no assignments, point blank.
On a short sale, I pretty sure you cannot reassign a contract to another buyer.
On any other type of sale, you can use the “and/or assigns” clause.
No you cant, banks wont allow it. You could do a double close. If the lender see you are going to make money on the deal by assigning it, they will just not do the deal. They will see it on the Hud-1, that why you do a double close.
can you explain double close?
I will run through a double close tomorrow for you.
Ihave family here tonight
I just learned about double close. But I would like a personal definition also.
In the mean time you can view more info here:
http://en.wikipedia.org/wiki/Double_closing