Do I need an option agreement, or purchase agreement to submit with my shortsale package? If so, do you know where I can find one?
Your best on using an option agreement and than recording it after the BPO is done. If you search on line you probably can find one.
I would use an agreement. Which is an option agreement until all contingency periods are removed. And I would never record my agreement…
You don’t record the Option contract you record a Notice of Option.
So, with the Option Contract method, you file a “Memorandum of Option Contract” or “Notice of Option”, which is a notarized document to allow for recording. Then, to the Lender, you submit the Option Contract which the investor puts together with the Seller/Borrower, which states that the investor may purchase the property, if there is an acceptable discount to allow the investor to purchase at a price that makes sense, either to rehab and hold, rehab and flip, or just flip.
Accompanying the Option Contract, one includes the Offer amount for the discount and then the lender forces the investor to take title, because lenders don’t allow assignments of the contract, just as they don’t allow assignments when purchasing an REO. The primary difference between the Trust method and the Option Contract method is that with a Trust, you can sell FHA once the title has been transferred for 90 days, and with the option contract, you want to sell to someone for cash or conventional.
What other differences are there, and what are the knockout punches with a Trust that makes Title companies and Lender nervous? It’s a long weekend, so I’m asking a lot of questions. :bobble
Check out this great post and you’ll find the examples you need:
Thanks. It covered many question-answers. Hope everybody will be benefitted form the discussion.