IF I AM NOT A REALTOR AND I AM NOT BUYING A POTENTIAL SHORT SALE DEAL OUT RIGHT - AM I WASTING MY TIME EVEN PURSUING SHORT SALE DEALS. I’M A BIT CONFUSED BECAUSE MOST OF THE LENDERS REQUIRE A LISTING AGENT BE INVOLVED, A LISTING SERVICE AGREEMENT BE INCLUDED IN THE PACKET ETC. HOW DO I GET AROUND THAT? ALSO, CAN I INCLUDE AN ASSIGNABLE CONTRACT WITH THE SS PACKET SINCE I WOULD BE BRINGING IN MY INVESTOR AS THE BUYER? OR DO I FIND THE BUYER BEFORE THE SS IS APPROVED OR EVEN SUBMITTED AND INCLUDE JUST MY BUYERS CONTRACT? ALSO, HOW WOULD SOMEONE LIKE ME GET PAID? IS IT MUCH LIKE A WHOLESALE TRANSACTION? I UNDERSTAND THE SS PACKET AND WHAT IS ALL INVOLVED WITH THAT BUT DO NOT UNDERSTAND WHAT TO DO ONCE I HAVE ALL THE PAPERWORK? PLEASE CLARIFY.
ALSO SORRY ABOUT THE ALL CAPS - MY LAP TOP IS MISSING MOST OF IT’S KEYES SO IT’S JUST EASIER TO TYPE IN ALL CAPS - LOL.
THANK YOU IN ADVANCE FOR ANY ASSISTANCE ANYONE MAY BRING
ANXIOUS AND CONFUSED,
Hi there,
no you dont need a listing agreement, you can have the seller write his/her hardship letter and include a paragraph indicating that they could not find anyone that would list their house because they owed more than what the house is worth…etc. Yes you can have an assignable contract. You can find the buyer anyway you choose, but be ready for a LONG journey… If you’re not a broker or listing agent you cant get paid comission, so you better make sure you BUY right if you want to profit on the transaction… Your buyer must be ready to CLOSE QUICK, so HML is usually the prefered method for a solid offer. It isn’t hard, but if you dont have all of the steps very clear I suggest you read all you can to learn before you send an incomplete package. You only get 1 chance to make an impression with the bank, if you blow it be ready to wait several months to get an asnwer…
THANK YOU SILVIO, I UNDERSTAND THE PAPERWORK, NEGOTIATING WITH THE BANKS AND ALL THAT BUT I WASN’T UNDERSTANDING HOW PEOPLE WERE PAID. MY UNDERSTANDING WAS THEY WERE ASSIGNING THEIR CONTRACTS AND GETTING PAID AN ASSIGNMENT FEE - JUST LIKE YOU WOULD IN A WHOLESALE DEAL. ALSO MY OTHER ISSUE WAS HAVING THE HOUSE ON MLS WHICH YOU ANSWERED AND IT LOOKS LIKE THE HOMEOWNER CAN ALSO GO FSBO - BUT THAT IS EXPENSIVE FOR SOMEONE IN DISTRESS. I WILL KEEP READING AND ASKING QUESTIONS TO MAKE SURE I HAVE EVERYTHING STRAIGHT. THANKS FOR YOUR HELP
BTW - HOW CAN YOU LIST A HOME FOR FMV WHEN YOU ARE UPSIDE DOWN TO BEGIN WITH. SO IF I HAVE A CLIENT WHO OWES 110K AND IT’S ONLY WORTH 75K - HOW CAN IT BE LISTED FOR 75K? THEY ARE STILL IN THE ARREARS AND IF A BUYER COMES IN AT 75K THEN WHAT? THERE STILL UPSIDE DOWN - I UNDERSTAND THE POINT OF THE LENDER REQUIRING THIS BECAUSE IT SHOWS AN ATTEMPT TO SELL BUT IT’S UPSIDE DOWN - WHAT AM I MISSING?
My understanding is that most banks will NOT accept an assignable contract, and the way to get paid is to buy the property and sell it immediately via a simultaneous or double close.
you are correct - i cannot put in an assignable contract and to get paid is tough in my state as i understand it - since i am not a real estate agent - i can be paid a consultation fee by the buyer - buyer proceeds which my buyers are not happy about - so i have worked with the sellers to be paid a document preperation fee instead - i’ve had more trouble with buyers
Cruz-
Why don’t you have the seller put the property in a trust, assign the beneficial interest from the seller to yourself, and the pass title to your end buyer via a double close?
