How to assign a contract to a buyer with conventional financing?
I have a property under contract, but I don't want to limit myself to buyers with cash and hard money.
Here's what I can think of:
-Traditional assignment: I am hearing that lenders won't allow contract assignments, probably since the contract is not in their buyers name.
-Double closing: Would I have to sign a 2nd contract with my end buyer? Would the bank question why the names on title and the contract differ?
It is very hard to wholesale a house to conventional buyers, especially in this market.
1. Many conventional lenders will not allow it to happen with an assignment.
2. Even if you double close, some conventional lenders have a seasoning requirement, so when you double close you will not meet those requirements.
I tend to stay away from conventional financing for that reason. Stick to cash or hard money buyers in my opinion.
Thanks, I appreciate the information!
How about filing a memorandum of purchase, with your purchase contract at your county clerk of courts. This will cloud the title and keep you in control.
Then have the buyer and seller go into contract directly at your sale price (to your end buyer), in the addendum write that the seller will pay you $xx to release your interest in the property. Obviously your seller will know what you are making at this point. Then the seller will pay you at closing.
I didn't come up with this....I've been researching how to do this and read an article that says to do it this way. Makes sense to me. Has anyone done this successfully?
hahaha! This thread is from almost six years ago...sorry to reply here. Thought I saw June 2014 somewhere!