Need to consider some other options - Posted by Michael Morrongiello
Posted by Michael Morrongiello on February 29, 2000 at 15:01:02:
Many lenders get skittish where they see you are selling a home that you technically do not own (at least not at the moment). When you try to educate them about the facts; That you are under contract to purchase the home for one price and then re-sell it immmediatly for a higher price, they get even more concerned about the “Real World” value of the home.
If your contract with the sellers is assisgnable and it sounds like it is and the mortgage company will not recognize that you have assigned your rights within that purchase sales contract to these buyers for a fee, then you need to start looking at other options.
I don’t know the actual numbers on your deal. What you are buying for? and what you are selling for? What do your buyers do for a living? How much cash are they putting down? What is their credit and credit scores like?
If there is enough spread in the deal perhaps you can sell to them and take back an owner financed note that could then be sold to generate enough cash to payofff your seller and allow you to fufill your contract obligation with him/her.