Unfortunately, most of the time you cannot use assignments on foreclosures.
I recently had this problem on a foreclosure. I put the property under contract and the buyer wanted me to assign the contract to him. Because I could not do it I nearly lost the deal, but the buyer decided to go ahead and buy the property from me anyway.
Doing assignments on foreclosures is not totally out of the question - but very unlikely. You just have to ask. Sometimes you will stumble upon a bank rep who doesn't care, but Very Rarely! I would go at it thinking you will not be able to assign the contract.
One way to circumvent the assignment problem when buying REO's is to put REO's under contract in an LLC and then sell the LLC to an end buyer. This way to avoid the non-assignment clause takes a little up front work but this is a good strategy.
Another way to go is to find an attorney that will do a double closing, or to have a hard money lender available to fund the deal for the flip. I do this all the time - I have a lot of guys who will lend me hard money. Sometimes it costs me a grand just to borrow the money for an hour, but if I can pay 1k to make 5-10k or higher I will do that all day long.
If you are pretty sure the house will sell fast, then do what I do and put your earnest money down. Get 30 days to close (I have never had a problem getting 30 days to close except in rare cases where they gave me a super deal if I would close faster) and start marketing it and try to sell it immediately. The bottom line is if you think you have buyers for the property, don't let anything stop you from making an offer. - 15224
I recently had this problem on a foreclosure. I put the property under contract and the buyer wanted me to assign the contract to him. Because I could not do it I nearly lost the deal, but the buyer decided to go ahead and buy the property from me anyway.
Doing assignments on foreclosures is not totally out of the question - but very unlikely. You just have to ask. Sometimes you will stumble upon a bank rep who doesn't care, but Very Rarely! I would go at it thinking you will not be able to assign the contract.
One way to circumvent the assignment problem when buying REO's is to put REO's under contract in an LLC and then sell the LLC to an end buyer. This way to avoid the non-assignment clause takes a little up front work but this is a good strategy.
Another way to go is to find an attorney that will do a double closing, or to have a hard money lender available to fund the deal for the flip. I do this all the time - I have a lot of guys who will lend me hard money. Sometimes it costs me a grand just to borrow the money for an hour, but if I can pay 1k to make 5-10k or higher I will do that all day long.
If you are pretty sure the house will sell fast, then do what I do and put your earnest money down. Get 30 days to close (I have never had a problem getting 30 days to close except in rare cases where they gave me a super deal if I would close faster) and start marketing it and try to sell it immediately. The bottom line is if you think you have buyers for the property, don't let anything stop you from making an offer. - 15224
About the Author:
About the author: Jesse Davis is an expert wholesaler in the Jackson Mississippi Real estate Market. Go here for tips on how to wholesale Real Estate and to get a free audio on Wholesaling Real estate
