Can A HUD Owned Prop. Be Assigned???
I'm a wholesaler and am curious to know if a HUD property can be assigned to a third party. In other words I'd meet the inital qualifications to bid on the home, but the contract would read sold to Chris1220 and or assignee.
My guess is that you can' t do it, but I figure I'd ask those wiser.
No, you can't.
If you could, then you would have people purchasing homes OO and then assigning them to investors when their bid was accepted.
-Chris
[addsig]
But you can purchase A HUD as an investment property. I realise that as an investor that your bid will be the last one accepted, but if you can buy it as an investment why can't you assign it?
chris,
Yes you canpuchase for investment, but I dont think you can just turn around andassign the property.HUD and VA, have seasoning requirements and they are government entities. Not an outfit to mess with. I realize there are some excellent opportunities, but not worth going to jail over. Pick them up and hold them for the duration and then LO them ....the return takes a bit longer, but this is not a get rich quick scheme. If you need quicker cash, I would find non-hud properties. Good luck!
Thanks folks.
Plese don't get the wrong impression. I'm not trying to get rich quick or looking to do anything illegal, I just thought that maybe this was another avenue that I could look into that maybe others haven't. I figured that I wouldn't be able to do it, but I thought that maybe I'd ask to see if anyone else knew for sure.
Thanks
Chris1220
For HUD homes, you bid online and MUST then send their contract to them via mail. As it is their contract you are using, you cannot add provisions.
Chris,
Sorry, I didnt mean to insinuate anything like that, I guess I am just looking at lots of things in the process of trying to help and the mindset I have is to cover all angles...(It's a Military thing) You are on the right track here and you just need more info in some areas like a lot of us. You are in the best place to get that info and guidance. Let me know if you want more help, as I am having a ball in this Foreclosure field! Good luck!
jksal,
That is true for some areas. I know that in the areas I am looking to invest in, I have to submit bids through RE Brokers. The best thing is to check your area for details on how to bid. The info is on the website and you can also contact the Broker for more info. Good luck
Quote:
On 2003-12-30 09:29, jksal wrote:
For HUD homes, you bid online and MUST then send their contract to them via mail. As it is their contract you are using, you cannot add provisions.
chris1220,
Why don't you look into this strategy:
Set up an LLC.
The LLC makes the offer on the HUD property.
If the offer gets accepted, you get together with your assignee, and he signs the paperwork to become a member of your LLC.
At closing, he buys you out of the LLC in the amount of your assignment fee.
The LLC (and your assignee) now owns the property.
You go to the bank with your assignment fee.
Very clever Briman 1. Very clever indeed.
Very clever, but now the question of legality. Not knowing the ins and outs of that strategy, have you used it before? If so and no problems, this could be very valuable info!
I agree. If it's clean, this could be ground breaking. Any hard results with this strategy Briman 1??
Brian,
What a great idea. Very creative.
Yes, I just started implementing it... I just haven't had any of my lowball offers accepted yet.
Thanks for the compliments, however, I can't take credit for creating this technique. I heard about it, and I thought it was cool, and ran with it.
Ask your attorney how to implement this in your state.
I just bought a HUD property and it is my understanding that as long as you close on it you can re-sell it the next day. The seasoning issue is with the ultimate buyer's lender. I actually have it up for sale ( or lease w/ option). I'll keep you posted...[ Edited by fluidassets on Date 12/30/2003 ]