Can You use an Assignment of Contract for a SS deal

Foreclosures, Short Sales, Tax Foreclosures
1

Okay,

My eyes are getting tired from reading all of these post. I love this site, there are so many knowledgable investors here.

Last ? for the day.

Has anyone used an Assignment of Contract after successfully negotiating a SS.

Just wondering if a double closing would take place or how to go about getting one closed since The Contract amount has to be the same amount offered to the mortgage company?

Thanks in advance.

2

I have never worked with a bank that has allowed an assignment of contract.

You will probably have to double close this one

3

Good evening jlexi,
Use an assignment. When you buy you are buying and or assigns, when you assign it at closing…the common misconception is that you have to supply the title co with the dollar figure you are recieving for the assignment. Not so obiwan ! The paper work will say you are assigning the contract…that’s it…no dollar figure has to be discussed with the title agent.

You can collect your fee at closing or before you deliver paper work to the title co. Your fee is not their business.

I have never double closed a SS deal, only assigned using the above method.

Gregg, Brother…Good to hear from you. I know it’s hot there but you need to get out more !!! Har !!

4

It sounds like some banks will and some banks wont allow assignment? If a bank says no what do you say to make them change their mind or do you work diff. exit? Is it something that needs to be talked about with the LM rep or put and or assigns on contract and if they dont say anything do it?

Thanks

5

Hey Everybody…I’m new to the site but I hope I can offer some help!

You can assign a short sale. Most states have a “built-in” assignable clause for purchase agreements. I would would simply ask a lawyer the question. If you find a buyer willing to pay more than you have negotiated do the deal and resubmit a revised HUD1. You may need to use a trust to assign beneficial interest to the new buyer. Keep in mind…all the bank cares about is that the deal closes!

I hope this helps!

6

Thanks so much everyone.

I specialize in ss but wanted to branch out into a different part of investing without all the headaches of rehabbing.

So I am trying to do all the research I can about Assignments before actually going through with my first one.

I really appreciate all the feedback.

7

Chris is right,
The bank want’s the deal to close. Don’t approach the deal as if you need “permission” to assign. It IS part of your offer.

If you do not like putting and or assigns behind your name, then take what ever contract you use and add a box with the statement this contract is assignable…then put a check in it.
I use word process to make the statement the same font as the contract…blends real nice too. I use both on the contract. Your name + and / or assigns and the box. After the name assigns always raises eyebrows to the uninitiated, thats where you come in with authority and let them know that is how you do business, your not asking permission and you do not need to justify it to any one. It is legal and standard practice. Move on.
No dollar figure is discussed with the title co and no new HUD required.

Darin