Posted by Nick O on October 13, 2003 at 16:43:55:
Ok if I were to work on this deal with an experienced investor what would be the best way to do this? What type of contract would I use if I were to work with the investor through this deal?
Thanks!
Assigning Short Sales??? - Posted by Nick O
Posted by Nick O on October 12, 2003 at 19:51:31:
I have been researching short sales and have a potential deal lined up in preforeclosure. From what I’ve read so far most use a simultaneous close and I was wondering if it would be Ok just to assign the contract? Will I have any problems or complications doing this? Appreciate the help!
Thanks,
Nick O
Re: Marc is right - Posted by TheShortSalePro
Posted by TheShortSalePro on October 13, 2003 at 07:55:15:
If you don’t have the $$$ to close on a short sale in your own name, or in the name of an entity such as an LLC, be advised that approved short sale transactions aren’t easily assigned. Mortgagees’ acceptance of a short is predicated upon their belief that by accepting a lesser amount they are maximizing their net recovery. If they suspected that anyone else was making a dime outside of what was indicated on the HUD1, they would rescind their (very restricted) approval.
However, if you had an LLC whose members can be substituted freely… simply have the prospective buyer join you as member or partner in the LLC. That’s the nutshell version. If you lay the proper foundation to acquire shorts in an LLC, you can essentially “assign” an approved short sale contract within the framework of the LLC.
Yes there are problems with assigning… - Posted by Marc NJ
Posted by Marc NJ on October 12, 2003 at 20:25:51:
There are problems with assigning a short sale contract because the lender usually will ask for a proof of funds ffrom the buying investor. Also your loss mit. rep would not be very happy to find out half way through the negoitating parties have changed. If you’ve never done a short pay-off I would recommend that a experienced investor with the capitol to back you help you thru this deal.
Short sales can be easy, but most are not. my longest negotiating period was with my first s/s deal and that took 7 months from signing the contract to getting the deal to the table. That didnot include the rehab time anor the time to market and sell the property.
Wh
Be prepared to spend alot of time on s/s deals, the banks do not like to discount pay-off’s
hope this helps,
Marc NJ