Questions about Assignments

  1. Can you assign REO properties or does it HAVE to be a private seller?

2)Is it reasonable to have a reputable contractor inspect a property and give you an estimate of repair costs at NO cost. I want to be sure I am accurately calculating my MAO before I were to make an offer.

2b) Would a seller or bank allow you to have a contractor come to the home
before you have made an offer?

  1. When working with a real estate agent how do they make commission off of a wholesale/assignment deal? I want to be sure if I do a deal on a property that was sent to me via an agent that they are properly compensated.

  2. When assigning a contract can you only do these deals on homes that are fully paid for? What if, and I’d assume is likely, he seller still has a mortgage left on the property? Are you negotiating the sale with the assumption that the seller is going to take a loss and still be on the hook for the remaining balance of the mortgage?

Thank you in advance for your replies.

Once you pay cash for a REO you can assign it to anyone you like.


I think "Real Estate Seller" needs a do over!
  1. You can assign a contract to purchase on any property with the exception of a foreclosure (Short Sale) which must be closed to person whose name appears on the contract which means only Transactional Funding provided bank or lender does not prohibit flipping the property for 30, 60 or 90 days!

  2. Any property for sale with the exception of an auction allows inspection (Contractor Estimate), the question is do you have time in the deal to do so (Competition) or is the seller requestion the exceptance of the property (As Is) reguardless of inspection!

2b. In most cases absolutely!

  1. Commission is normally 3% to listing agent and 3% to buyers agent! When you assign your agent becomes your end buyers agent because your assignee is taking over your position in the contract!

  2. You can assign a contract to purchase whether it has no mortgage on it or it has a 1st, 2nd or 3rd TD! Mortgage gets paid off in escrow by your new end buyers down payment and new mortgage loan! Unless the property is upside down and then it would be a short sale!

Your welcome!!!


GR, thanks for correcting me.

Great information GR,

In addition, you can assign a purchase contract on short sales. You are purchasing “and or assigns” anyway…Right??So a buyer is purchasing or making the offer “John Smith and or assigns” Another way is if the Purchase Agreement was written in an LLC or other/similair form where the new buyer can take over the LLC. It also helps if the new buyer is well funded, such as an all cash buyer.
A “foreclosure” as you know is not the same as a short sale. A short sale needs the mortgage holders approval of the sale. The transaction may also require notice to all parties involved of a assignment, You do not and are not required to tell anyone you are assigning for a fee or profit. Example: you may be assigning to your own LLC or as a gift to someone, it is not the banks/sellers business. As an investor you are purchasing “and or assigns” so everyone is on notice and you have the right to assign.

AS for a contractor…you should have some on your team already. You know you need the repair knowlegde so get it or get someone who has it. Treat them well expect results and take them with you when you find a potential property to give you the numbers to make an informed decision.
Your question 4 is a short sale question really. When the seller is attempting to sell his property to you for less than owed…the motgage holder(usually a bank) gets to make the decision(for the seller) on whether to approve the sale price to you…So there will be no balance due for you or your buyer. The motgage company or bank will work with the seller to determine how the difference will be handled.

Hope this helps,