I want to contract for bank REO properties, but have heard that many banks do not allow assignment of contracts and will not accept a contract with lanugauge…“John Doe Buyer or assgns”. Likewise have heard that banks will also not allow property to purchased through land trust which would allow change of beneficiary? Can anyone that is buying actively from bank REO brokers comment. What is solution short of double closings?
I have never ran into a problem like this… but have you asked your agent?
I have heard of folks using a land trust to assign, but never seen that actually happen. However I have seen a lot of folks that use the double close option effectively.
Double closings are your best option. Most banks will not accept “assigns” in the contract, but as far as you flipping it, go for it.
Also make sure you build in your B to C transaction’s price enough room to pay for transactional funding (usually about $1,500) and that the title company allows double closings.
Double closing works best. In most states you can quick claim deed properties after close to another owner. Another option is to buy with an LLC then just change the owner of the LLC to the new buyer and of course add the fee to create the LLC. And Or Assigns is rejected by almost everyone these days.