Hi, I’m running across a deal that I can’t refuse but don’t have the time or money to do so. I want to flip the contract but I have never done it before. How do I go about doing so without using the assignee clause? The sellers get nervous when they see the “assigness” clause. I’m in Texas, Please help!
I’m not sure, but how about doing a double-closing? Find a title co./escrow that has no problem doing these types of transactions. The problem may be with the money source - if there is a seasoning requirement on the lender’s side. But if your investor is using hard money (or even some “traditional” lenders) this shouldn’t be a problem.
Haven’t learned this from personal experience, but from reading the posts here. Someone correct me if I’m wrong.
Immy is right. The assignment is a much easier sell to the lender. If buyer #2 is using hard money or cash, a simultaneous close will not be a problem. If, on the other hand, they are using a non conforming lender, you can count on chain of title headaches. Lenders can and often do require 2 and 3 year chain of title histories. The appraiser for Buyer #2’s Lender will identify all prior sales in the last three years. Technically, the appraiser should mention the sale to Buyer #1. A majority of conforming lenders have issues as well, but depending on the numbers they may still fund the deal. I have found that the more info Buyer #2’s Lender has, the more likely they are to fund. The challenge isn’t with the title company, it’s with #2’s Lender. If you’re Buyer #1, ask Buyer #2 for two pre-approval letters. One from his Lender and one from his plan B hard money source. Take all the stress out of the close. Are we having fun yet?