I have a purchase contract with a seller in foreclosure but I’m not sure of the logistics in closing the transaction. I’m selling the property to a retail buyer but my question is do I need to have a double closing or can I assign a retail buyer my purchase contract with the seller? Will the lender have a problem with this? How should I deal with the buyers attorney?
I was recently told it’s actually easier to just get an option on the property and the when I sell the property to a retail buyer, put “Owner Of Record” on the purchase agreement as the seller. THen at closing I would get paid as a fee to clear title-similar to a judgement would? Any help is greatly appreciated!
why on earth would you tie up someone’s home, while they’re fighting to save it in time, when you don’t know ‘the logistics of closing a transaction’? just curious.
and did you think that a) a normal retail buyer needs a mortgage which may not come in time, and b) a normal mortgage will probably be troublesome, if even possible, on a contract that is being assigned?
For your curiosity…sellers are not “fighting to save it in time”. the property is in its early stages of FC. They have months before the sheriffs sale however they just want to be done with the house as quick as possible.
Further, I know others who have done transactions like these so I know they are possible. The “logistics of the transaction” are not complicated, but it does make things smoother when you fill out right paperwork the first time, right?
And BTW, if we only took deals that we knew how to execute every part of the transaction, how you ever gonna learn? You can read as many books and courses as you want, but the only way you really know something is by doing it…I’m sure you’d agree
i’d agree it’s not good to just sit there reading (like i’m doing, but i’m not doing it out of any hesitation, rather because i’m moving across country in jan and it would be dumb for me to start before then). You should get out there and do stuff.
however, even if they have months, that is still a short period of time. this is their house, it is a major life event for them, those few months don’t seem like all the time in the world to them, unless they’re in denial.
the answers to what you’re looking for are on this site in articles. i’ve never done a deal and i know the answers to your questions.
out of curiousity, did you complete the wholesale by now?
Assign the contract over to the buyer. Make sure you do an assignment of contract and provide this to the lender if they question it. If the house needs to be rehabbed, get a hard money lender and they don’t care about the assignment. The lender (bank) may have you go to the closing, but it is case by case.
All else fails, bring in a buyer to do a contract with the seller and you do a seperate contract with the buyer so you can get paid.