Foreclosure/REO properties

Is it possible to do a contract assignment on a foreclosure or REO property? A representative of Ocwen and First Preston told me that they do not allow this. Also, can I get a contract on a forclosure or REO property without a pre-qulaification letter from a bank?

Howdy Texguy:

I too have found the same to be true. I have not tried to flip the ReO’s that I am buying but so far they all have wanted the pre-qualification letter. I too have heard that it is almost impossible to assign the contract and some even have addendums that state that the contract is not assignable.

You may still be able to do double closings but you run the risk of losing the earnest money if you can not close.

Banks were getting burned by inexperienced wholesalers who had no idea what they were doing and tied up property for months trying only to find another buyer at a higher price. Good idea for them but it has made it hard to make an easy buck dealing with Reo’s.

This is not what you wanted to hear and I am sure there are exceptions but not many