Where it says buyer in the contract see if you can add "or assigns". As far as I am aware this would enable you to assign the contract. Simple huh? Almost seems to easy. Maybe it isn't, but that's my $.02
I'm not too familiar with a REO contract though. What makes it different from any other contract?
Ryan J. Schnabel
Oh, and please don't tell me that it's different because it's REO.[ Edited by rjs9352 on Date 02/16/2004 ]
Steve Cook has a creative method with which to achieve what you are attempting to do, because you cannot simply assign REO properties as you know - the contracts are non-assignable.
Oh, and Ryan, please don't give advice when you have no idea what you are talking about, very dangerous!
REO contracts are NOT assignable as is, period.
Allow me to pass along a gripe with this bull-in-a-china shop attitude some of the gurus pass down to newbies like yourself - while you must take action and not use excuses to run around in a circle in analysis paralysis, there are in fact REALITIES in REI where depending on the state you are in, some things have to be done DIFFERENTLY than in other states in the union.
Educate yourself and take action at the same time, but don't give advice like Robert Allen teaches to just add and/or assigns on a bank contract - they will just laugh at you
You can get a contract under agreement for you then change it to someone else in the middle BUT this is very touchy and doesn't always go through. There is a 27 page addendum that has a be approved. If it is NOT approved you both lose the house. And the contract amount stays the same, you can get paid on the HUD if the buyer turns in an iinvoice for a payoff to the closing attorney.
You can get all the way to closing and the bank can back out. But it can be done, just not as an assignment.
Lori
Dave is right.
Out of seven that I worked on last year only 3 closed with everyone being happy and 1 closed but the buyer never paid the fee. Three were put back on the market and both interested parties lost rights and were blocked from obtaining the properties.
When you talk about private party transactions, which most of the CRI really are, the contract including assigning clause can be as simple as the contract can get. Several paragraphs and sign on the doted line. the problem starts when you wan to build in escape hatches and safety precautions etc. Without that it can be as simple as it gets to sell the car.
There is no law that says REO (Real Estate Owned) contracts may NOT be assignable. REO is just property owned by the bank. So feel free to send contracts to the bank/agent with the phrase "...or assigned", as much as you want.
With that said, there is a snowball's chance in hell of them being accepted.
Banks want to sell the property, not become one link in a chain of contracts between investors. We are all friends here so we can be honest, the reason that a contract is assigned is due to the inability of the first investor to close on the house.
Where it says buyer in the contract see if you can add "or assigns". As far as I am aware this would enable you to assign the contract. Simple huh? Almost seems to easy. Maybe it isn't, but that's my $.02
I'm not too familiar with a REO contract though. What makes it different from any other contract?
Ryan J. Schnabel
Oh, and please don't tell me that it's different because it's REO.[ Edited by rjs9352 on Date 02/16/2004 ]
Steve Cook has a creative method with which to achieve what you are attempting to do, because you cannot simply assign REO properties as you know - the contracts are non-assignable.
Go to this page
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=377
Oh, and Ryan, please don't give advice when you have no idea what you are talking about, very dangerous!
REO contracts are NOT assignable as is, period.
Allow me to pass along a gripe with this bull-in-a-china shop attitude some of the gurus pass down to newbies like yourself - while you must take action and not use excuses to run around in a circle in analysis paralysis, there are in fact REALITIES in REI where depending on the state you are in, some things have to be done DIFFERENTLY than in other states in the union.
Educate yourself and take action at the same time, but don't give advice like Robert Allen teaches to just add and/or assigns on a bank contract - they will just laugh at you
You can get a contract under agreement for you then change it to someone else in the middle BUT this is very touchy and doesn't always go through. There is a 27 page addendum that has a be approved. If it is NOT approved you both lose the house. And the contract amount stays the same, you can get paid on the HUD if the buyer turns in an iinvoice for a payoff to the closing attorney.
You can get all the way to closing and the bank can back out. But it can be done, just not as an assignment.
Lori
Dave is right.
Out of seven that I worked on last year only 3 closed with everyone being happy and 1 closed but the buyer never paid the fee. Three were put back on the market and both interested parties lost rights and were blocked from obtaining the properties.
[addsig]
When you talk about private party transactions, which most of the CRI really are, the contract including assigning clause can be as simple as the contract can get. Several paragraphs and sign on the doted line. the problem starts when you wan to build in escape hatches and safety precautions etc. Without that it can be as simple as it gets to sell the car.
Hey,
There is no law that says REO (Real Estate Owned) contracts may NOT be assignable. REO is just property owned by the bank. So feel free to send contracts to the bank/agent with the phrase "...or assigned", as much as you want.
With that said, there is a snowball's chance in hell of them being accepted.
Banks want to sell the property, not become one link in a chain of contracts between investors. We are all friends here so we can be honest, the reason that a contract is assigned is due to the inability of the first investor to close on the house.