Short Sale Closing?
| Quote: |
|
I know you will have to pay closing cost and also wholesale the short sale. my question is how do you close if you have no money. (mortgage money). newbie need some answer please.[ Edited by Beast on Date 02/08/2003 ]
One technique would be to carefully word your Short Sale Proposal such that it's approval will permit you to assign the Contract.
You could sell via an assignment the Approved Short Sale Contract to an Investor who would be able to close.
Your 'assignment fee' would be sufficient to pay you for your time and expenses including, but not limited to titlework, appraisal, etc.
Does any one have a sample copy of a contract with the proper wording that would allow me to assign to an investor before closing? please send to cscustoms@comcast.net
fax 877-592-3407
thanks in advance.
The problem is that if the short sale is approved, they'll expect you to close within 30 days or so....and their decision to Accept Short is predicated upon the creditworthiness of the Buyer. You have to devise the Contract such that you have the right to assign the Contract to another entity at closing. "Somewhere" in the language of the agreement. You'll have to make sure that the written short sale approval references the Contract and it's terms.
Otherwise, you might get screwed. I've only once assigned a short sale approved Contract to an Investor at closing. It was like pulling teeth. But, the $10,000 assignment fee was worth the trouble.
In retrospect (and my new policy) if it were for $1,000 I wouldn't waste my time.