How do I close this deal as an REO and assign the contract to the buyer?
I was working on a short sale that went to auction recently. The bank approved the short sale previously but I needed more time and the negoiator stated she would give the extension. Well she didn’t and the property went to auction. I still was working under the redemption period which the judge approved. Any way the bank decided they didn’t want to approve the short sale.
This property is now an REO property that I want to assign. The buyer got a mortgage and the funds are in the attorney’s escrow account. (The attorney knew what was going on and didn’t return the money to the mortgage company. He closed the deal thinking the bank was going to approve the short sale again).
How do I close this deal as an REO and assign the contract to the buyer?
In St. Louis the REO companies will not allow assignments of contracts. This means you would need to double close. If you cant double close using the buyers funds either because the title company or state wont allow you, then you need a 1 DAY LOAN from a private lender. There are private lenders that do exactly this if they know your end buyers financing is completely lined up.
I agree with the last post, you have to get a 1-day loan (also called “Bridge loan” in some circles) and double-close.
However, you have to be sure that the buyer’s lender does not have issues with the seasoning of title. In this current environment, there could be some fraud questions raised if the attorney does not disclose the title transfer from the original Seller to you to your buyer’s lender and (heaven forbid) your buyer defaults on the loan and the deal is investigated.
I know you want to collect the money :biggrin and yes, you are very close now, but be careful about the transaction. Honestly, the attorney is bound to protect the lender and if they didn’t act in the lender’s interests, they would expose themselves to some future problems. After them, the “Men in Black” might have some questions for you.