Wholesaling Issues
Hi:
I have three properties under contract. I want to sell the contract. My buyer was willing to buy the contract. He has already made me a downpayment for the "Assingment of Contract".
He was approved for loan and the Mortgage Broker wanted me to fax him the contract. Though the one buying the contract from me has not completed the payment, but I didn't want to be the reason he failed to get the loan. I faxed the contract to the Mortgage Broker.
The Mortgage Broker stopped the loan. He didn't tell any of us until we started calling the office. He said the he has stopped the loan because the name on the contract is mine and not my Assignee's. That means the person I assigned the contract to.
I explained that the contract now belonged to the assignee and faxed the signed up "Assignment of Contract"agreement which we entered into to him. Still the Mortgage Broker refused to continue with the processing of the loan.
As a result, the assignee then backed out on me. My questions here are:
Who is wrong in this picture?
What is to be done in this case?
Do I have to sue anybody to court in this situation?
If not, what is the logical thing I should do next?
I need a help from experienced professionals, please.
Thanks for your time and patience.
It is me:
Frank. 
I have heard other complain of deals gone bad because many lenders are now requiring "chain of title".
Why did your buyer back down? Was he simply afraid he was not getting financing? Buyers remorse?
I have some that get around this by having the seller sign contract directly with the buyer, so there is chain of title, AND signing a separate agreement with you for a "marketing fee". The marketing fee should appear on the HUD to avoid any fraud issues.
I don't know if you can salvage this deal or not, but...
Oh, I just read the date of your first post. I guess you can't work that one out.
Have you had any other success?