I wouldn't rely upon what you have written (the right to assign) into your agreement with the seller to effectuate an assignment. If that's your intent, you must be proactive in your acquisition strategy... utilizing an LLC, for example.
It doesn't matter too much what your agreement is with the Seller... the mortgagee will dictate terms under which they will agree to facilitate a short sale. Their conditions must be adhered to by your closing agent... or the mortgagee can rescind their approval... and send the closing package back.
Until they release the mortgage... it's their game.
Their terms of acceptance will be articulated in their Letter of Approval.
Once you've read that, then you'll know if you have a deal.
I suppose that as long as your assignment fee is separate and apart from the sale proceeds... your attorney won't be falsifying a HUD1...
[ Edited by TheShortSalePro on Date 02/26/2004 ][ Edited by TheShortSalePro on Date 02/26/2004 ]
Approval letters are typically issued for a specific Buyer at a specific sales price, and a specific net to the mortgagee... within a specific number of days.
ss pro,
Funny how this topic came up again!! SS pro and I were just emailing each other about this yesterday. I've been dealing, or should I say struggling with Countrywide to get this SP. SS Pro says it can take weeks, so be it. In any case, I was very upfront with them and the seller about my intention to assign this to a third party, thusfar they haven't had a problem with it. I 'll let you know how it goes as the process continues.
Why would a bank care who buys it as long as they have a qualified buyer? In additon, why would they care what I would make after I have an agreement with them?
I am very interested in this subject. I recently had a deal where the double closing presented an issue and the idea of assignment came up. My understanding was that it would be risky to assign the contract and that the bank may pull the deal. I also undestand that the bank wants as much money as possible..so the idea that someone else is making money (that the bank could have) is a concern to the bank as they are talking a loss.
But, I would be interested to know if you end up assigning your contract.
I'll definitely let everyone knows how it turns out. I understand what your saying about the bank taking a loss, or not making as much as they could have. The way I see it though, is they're not making anything now, and it's just gonna go to sherrif's sale anyway. This particular property is in particulaly bad shape. There will be some equity in it after I assign it, but the investor that will buy it is going to rent/hold.
On the short sale I just got approved I never once mentioned to the bank that I may be assigning the contract and on their Approval to Participate it says "....the deadline you have to obtain a signed Contract of Sale from a qualified buyer is..."
Hence they do not care who is paying them, as long as they get paid. Good deal for me. Hope yours turns out well too!
I will. This deal hasn't been moving as quickly as I would like. The owner, just got me all the information I need to submit an offer yesterday. The shriff'd sale is in May, so time isn't my friend. It all comes down to what I can get the home for.
to Ryan: Can you please explain On the short sale I just got approved I never once mentioned to the bank that I may be assigning the contract and on their Approval to Participate it says "....the deadline you have to obtain a signed Contract of Sale from a qualified buyer is..."
What exactly did you get approved? How can you have a short sale approval if you have not yet presented a signed Contract? Or, am I missing something?
(a mortgagee indicating their willingness to participate in/consider a short sale is far from a mortgagee short sale approval.)
I attempted my first short sale a few months back. I simply called and asked for the approval to be faxed over and the 2nd and 3rd mortgage holders did so without any paperwork other than the autorization to release information. The first mortgage was a HUD mortgage and we didn't have the time or cooperation from the seller to do what was reqired.
Last Thursday at 7:30AM, an asset manager actually called and asked me to put a short sale offer on a property in San Antonio, TX. Go figure.
About assigning SS deals: NOT. I charge my investors a digestable pass-through fee that is not carried on the HUD 1 or Net Sheet. Fortunately, I have a good group if investors and don't even have any written agreement. They know if they don't pay or pull some knda crap on my Seller, I'll cut them off.
The lender may be is VERY concerned.
[addsig]
I wouldn't rely upon what you have written (the right to assign) into your agreement with the seller to effectuate an assignment. If that's your intent, you must be proactive in your acquisition strategy... utilizing an LLC, for example.
It doesn't matter too much what your agreement is with the Seller... the mortgagee will dictate terms under which they will agree to facilitate a short sale. Their conditions must be adhered to by your closing agent... or the mortgagee can rescind their approval... and send the closing package back.
Until they release the mortgage... it's their game.
Their terms of acceptance will be articulated in their Letter of Approval.
Once you've read that, then you'll know if you have a deal.
I suppose that as long as your assignment fee is separate and apart from the sale proceeds... your attorney won't be falsifying a HUD1...
[ Edited by TheShortSalePro on Date 02/26/2004 ][ Edited by TheShortSalePro on Date 02/26/2004 ]
Have you actually had approval letters that say it can not be assigned?
Brenda
Approval letters are typically issued for a specific Buyer at a specific sales price, and a specific net to the mortgagee... within a specific number of days.
ss pro,
Funny how this topic came up again!! SS pro and I were just emailing each other about this yesterday. I've been dealing, or should I say struggling with Countrywide to get this SP. SS Pro says it can take weeks, so be it. In any case, I was very upfront with them and the seller about my intention to assign this to a third party, thusfar they haven't had a problem with it. I 'll let you know how it goes as the process continues.
Why would a bank care who buys it as long as they have a qualified buyer? In additon, why would they care what I would make after I have an agreement with them?
I am very interested in this subject. I recently had a deal where the double closing presented an issue and the idea of assignment came up. My understanding was that it would be risky to assign the contract and that the bank may pull the deal. I also undestand that the bank wants as much money as possible..so the idea that someone else is making money (that the bank could have) is a concern to the bank as they are talking a loss.
But, I would be interested to know if you end up assigning your contract.
I'll definitely let everyone knows how it turns out. I understand what your saying about the bank taking a loss, or not making as much as they could have. The way I see it though, is they're not making anything now, and it's just gonna go to sherrif's sale anyway. This particular property is in particulaly bad shape. There will be some equity in it after I assign it, but the investor that will buy it is going to rent/hold.
How did it turn out?
On the short sale I just got approved I never once mentioned to the bank that I may be assigning the contract and on their Approval to Participate it says "....the deadline you have to obtain a signed Contract of Sale from a qualified buyer is..."
Hence they do not care who is paying them, as long as they get paid. Good deal for me. Hope yours turns out well too!
Ryan J. Schnabel
I will. This deal hasn't been moving as quickly as I would like. The owner, just got me all the information I need to submit an offer yesterday. The shriff'd sale is in May, so time isn't my friend. It all comes down to what I can get the home for.
to Ryan: Can you please explain On the short sale I just got approved I never once mentioned to the bank that I may be assigning the contract and on their Approval to Participate it says "....the deadline you have to obtain a signed Contract of Sale from a qualified buyer is..."
What exactly did you get approved? How can you have a short sale approval if you have not yet presented a signed Contract? Or, am I missing something?
(a mortgagee indicating their willingness to participate in/consider a short sale is far from a mortgagee short sale approval.)
I attempted my first short sale a few months back. I simply called and asked for the approval to be faxed over and the 2nd and 3rd mortgage holders did so without any paperwork other than the autorization to release information. The first mortgage was a HUD mortgage and we didn't have the time or cooperation from the seller to do what was reqired.
I've got a good one for you guys:
Last Thursday at 7:30AM, an asset manager actually called and asked me to put a short sale offer on a property in San Antonio, TX. Go figure.
About assigning SS deals: NOT. I charge my investors a digestable pass-through fee that is not carried on the HUD 1 or Net Sheet. Fortunately, I have a good group if investors and don't even have any written agreement. They know if they don't pay or pull some knda crap on my Seller, I'll cut them off.
C-