Several of my favorite title companies have told me that. Latest one this week, she said they had a meeting with their legal dept. and will no longer be doing them.
What the heck is going on? Did I piss off those realtors and this is my punishment?
Luckily it was easy to find one that will, but it’s a small local title company in a town near the property I want to assign.
Anybody else having this situation?
I heard the same thing the other day in my area. One of the major title companies that handled most wholesalers’ assignment decided to quit doing so. I wasn’t able to figure out all the details but I think it might be a case of a few bad apples ruining the bunch here. My thoughts are the title company saw wholesaler business as a breakeven or loss/risk.
One reason could be that a higher proportion of the deals they were working at the title company didn’t close. Either the buyer backs out or seller backs out or something happens. This is especially true if your area has an influx of new investors trying to make it rich. A lot will get something under contract at a price that is too high and immediately turn it in for title work to then try and wholesale it. Title company loses there as the deal never sells and wholesaler just cancels contract.
Another reason might be the perceived risk involved by the title company. They are often the ones to explain the settlement statement to Seller and might not feel comfortable closing those transactions especially considering the Seller doesn’t always know there is an assignment nor what an assignment is nor that the original buyer is getting paid. If the original buyer or wholesaler doesn’t show up to closing that can make it a bit awkward without prior explanation to seller.
Realtors could also have it out for you lol. I know some in my area that are vehemently against wholesaling or buying direct from seller.
Sounds like you’re getting black balled. My natural reaction is to blame the realtor.
Which market are you in? Just curious.
I’m in the Central California market, where housing prices are below the California norm. There are cheaper places, we have some really remote areas. I found a 5 acre spot in the north eastern Cal nr Redding, for $9,000, but there is no water, no power, it seems kinda adventurous, fun and cool to live off the grid, some solar, nature & the wild life, but it’s 3 hours drive to Walmart.
Assign is tricky - because the buyer will find out and that’s a problem if you weren’t straightforward about your process. Perhaps double closing could be helpful . . .
Interesting. How long have they had this policy instated?
Im sorry to hear about that. Glad you found another title companh but you may jusy consider doinf a “double close” with transactional funding. Im sure you have consisered that right?