To help avoid the lender seasoning issues, how do you place a lien on a property when you are flipping the contract so that you get paid at closing?
Thanks
Howdy N2that:
Just get a standard note and deed of trust and get the seller to sign it in front of a notary and get it recorded at the courthouse. You could also give the title company the assignment agreement and let them handle the closing from your seller to your buyer and put your assignment fee in the HUD closing statement.
Ok, that’s great however - what if I don’t close on the deal? How easy is it to remove the lien?
Simple answer. Close on the deal. Don’t make deals that you can’t close.
Simply question. What is the point of putting a lien on the property anyway? How exactly do you think that that is going to solve lender seasoning issues?
Raj
I was doing some reading and it was saying that in some cases it may be difficult to do a double closing or a double escrow when flipping contracts so, if you place a lien on the property you will get paid off as one of the lien holders when your asignee purchases the property.
If you do a contract assignment, then you get paid either at a) when you actually assign the contract, getting paid upfront or b) when the deal closes, the assignment is listed on the HUD-1.
No need to place a lien on the property to collect.
Raj
Ok, last question (forgive me I’m new to this). Exactly what is a Hud-1, What is it used for and where can I obtain one?
N2that,
A HUD-1 is a Settlement Statement. Here ya go:
http://www.hudclips.org/sub_nonhud/cgi/pdfforms/1.pdf
Keith