Can we Wholesale short sale property? Will the bank allow us to assign the contract? or do we do an A to B, B to C?
A short sale must be closed in your name! So you will need transactional funding to close A - B then close the next morning B - C. Assignments are not allowed in a short sale as the HUD 1 has to reflect a real persons name and must match the contract and the short sale approval.
Make sure the lender does not try to slip language into there short sale offer approval letter prohibiting a resale for 30 to 90 days as some of them have been making there approvals with this restriction! (Or trying to mandate this as a restriction!)
thank you for the reply, how des transactional funding work? what kind of fees are involved? how much comes out of my pocket upfront? im limited on cash and dont want to get into something that will get me into trouble.