Lenders Won't Allow Short Sale Assignments???
In a meeting earlier this evening, someone told me that you cannot assign a short sale purchase and sale agreement to another investor, and that lenders won't allow double closings at the short sale closing either?
Could this possibly be true? Don't PSA's subject to a lender short sale get assigned/wholesaled all the time? What about double closings?
Thanks!
Martin
"Don't PSA's subject to a lender short sale get assigned/wholesaled all the time?"
It can be done, but it requires that the proper foundation be lain.. but simple assignments are the exception rather than the rule.
You'll find that while in theory many things are made to appear simple... but in practice, well, that's what separates the wheat from the chafe.
I just attended a ss seminar on Saturday given by Deb McMillan (short sale ****Must Reach Freshman Investor status before posting URL's***). Apparently there is a 91 day seasoning rule (atleast in Ohio). Apparently, the way around it if you are going to wholesale is to buy the property in a trust and assign beneficial interst to your end buyer. As a beneficiary, your buyer has all rights as owner. However, in 91 days he can then put into his own name. Banks want to know that they are selling to the same person who negotiated the whole short sale with them and the homeowner in the first place, so it is important to put the trust in your own name or the name under which you are negotiating. I am a beginner, so am just repeating what I got out of this seminar. You didn't get much of an answer out of the "short sale pro"...he doesn't seem too helpful. If you want to contact Deb McMillan either email me or look on her web site. Hope this helped. Jana
"Seasoning" has little, or nothing to do with the poster's question. Creative techniques are essential if the Purchaser can't or doesn't want to take title to the negotiated, mortgagee approved preforeclosure short sale..
The poster probably attended a seminar and came away with the idea that assignments are simple, and done all the time.. which we know to be an exaggeration.
Assignments, without the proper foundation, are the exception to the rule, and very difficult for the inexperienced.
A "trust' is a possible circumvention. My favorite technique (for those Clients seeking to assign) is the LLC.
Quote:
On 2004-03-18 09:57, jquinliv wrote:
I just attended a ss seminar on Saturday given by Deb McMillan (short sale ****Must Reach Freshman Investor status before posting URL's***). Apparently there is a 91 day seasoning rule (atleast in Ohio). Apparently, the way around it if you are going to wholesale is to buy the property in a trust and assign beneficial interst to your end buyer. As a beneficiary, your buyer has all rights as owner. However, in 91 days he can then put into his own name. Banks want to know that they are selling to the same person who negotiated the whole short sale with them and the homeowner in the first place, so it is important to put the trust in your own name or the name under which you are negotiating. I am a beginner, so am just repeating what I got out of this seminar. You didn't get much of an answer out of the "short sale pro"...he doesn't seem too helpful. If you want to contact Deb McMillan either email me or look on her web site. Hope this helped. Jana
Jana, you may want to go back to your bootcamp. SSP answered the person's question. Seems like you really don't know what your talking about. Seasoning has nothing to do with the posters question.
Tom[ Edited by tbelknap on Date 03/18/2004 ]
Whoever Tom is...thanks for the words of encouragement. We newbies appreciate the support and lucid answers.
That is funny Jana, I was wondering who you where as well.
Tom
Dear Martin,
You might want to look at the wholesaling forum under "using trusts to wholesale". I have gotten some really clear and helpful answers. Sorry if I confused things. I'm trying really hard to study , learn and understand this process myself...just a newbie. Jana
My goal is to help all those who are working with distressed sellers to complete their transaction... the operative word being 'complete.'
Transactions that deteriorate and fail due to the speculative investor's inability to foresee avoidable problems result in hundreds upon hundreds of families losing their homes and/or an improved situation ... unnecessarily, that otherwise could have been saved or resolved to satisfaction.
The bulk of my consulting hours are spent trying to hold together deals gone awry..
I do that not so much for the speculative investor (though they do benefit) but for the Homeowners who have gotten in over their heads
Deals that could have been simple but morph into something horribly disfigured at the expense of the Homeowner.
It is much easier to lay the proper foundation for a proposed transaction.
You must be able to see and appreciate the big picture... like a jigsaw puzzle.
Proaction is better than reaction. That's my Friday sermon.
Good luck. Reading is essential... if what you read doesn't make sense, consider the source. Good Luck.[ Edited by TheShortSalePro on Date 03/19/2004 ]