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!
Calsey77
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?
-H
Housebroken,
I’m trying to follow this - please clarify. . . is it just the prior sales on the property for the past 3 years or Buyer #2’s history of prior sales (if that makes sense).
Thanx,
Immy
Immy
It’s prior sales on the property.