I Have a seller here in the great state of Tx that doesn’t have a problem with giving me the contracted rights to a property with a mortgage balance of around 94,000, I have an appraisal of 126,000 and a contracted buyer at this time for 126,000. The property gets to uderwriting and they for whatever reason can’t close it, they say I have an approved buyer but would like to remove me from the deal to be safe. What’s the issue? Any suggestions, need alternate contact that is familiar with how to make money while being honest and helping others. Everything is disclosed all parties are ready to close out this deal!!!
This is were an option can save you a lot of grief.
Instead of an assignment you could have optioned this property, your lawyer records the option at City or Town hall, then if someone wants to play games by cutting you out of the deal. Guess what???
No one closes, because there isn’t a title company in the world that is going to take on that liablilty.(possible title problem)
I had a nit wit once who thought he was smarter than me. I had a straight option on a home and stood to make about $15K on a $500 option. Well “genius” here, decided he’d go right to the home owner and pay him more than my option price. When his lawyer went down to do the initial title work there was my recorded option. NO GO JOE!!
Nice try dummy! Sold it to another investor and was never happier to pay my lawyers fee!
I suspect that the problem is that your name is not “officially” on the Title as property owner, which probably raised a red flag to the underwriter. If you have a Title Company that is used to doing the type of transaction that you’re doing, then they can work it out for you. If not, you might have to change Title Companies.