Assigning Sub2 contracts - Posted by george
Posted by george on May 06, 2006 at 13:20:16:
I see a real danger in so many houses taken Subject 2 being assigned to newbies desperate to find a deal.
When the assignee runs into trouble, doesn’t have the reserves, can’t make the payment, allows the property to go into foreclosure, guess who winds up in court? The person who made the original contract taking the property Subject 2.
The original owner thought he was going to be spared a foreclosure on his records, so now he runs to an attorney claiming his credit is ruined. (never mind he may have been foreclosed anyway.) And guess who the judge sides with? The hard-working homeowner pursuing the American dream, or the lecherous, real estate investing vulture?
These lawsuits are happening, folks. There are too many things that can go wrong with Sub 2 assignments once you give away control.
Danger, Will Robinson.