This my Rant !!!! PLEASE READ VERY IMPORTANT !!!

[torojd]

I don't quite understand why FHA doesn't remove the stupid "90-day" flip rule???  We as investors are doing our part in stimulating the economy, right?  Why is the gov't putting a damper on getting deals done and getting houses moved??? WTF? ('cuse me).  I mean seriously!  I might be losing a deal due to this stupid rule.

Story:

I've been working on this deal since May of last year (yea).  I finally got it negotiated and found a qualified buyer.  I had the homeowner quit claim me his property in June.  The following month in July the property was foreclosed on.  I had the H/O assign his rights to redeem the property to buy more time.  Long story short I ran out of time and the property became and REO.  Since then, I've made an offer to the new RE agent hired by the bank and am hoping to assign the contract to the same buyer.

Two questions I desperately need help with:

1.  First,  can you guys (SS investors only please) tell me whether you have the H/O quit claim the property to you (or ur LLC)  or, do you do execute an "Assignment of Contract" with the end-buyer instead?  I figure if I'm (my LLC) on title, the day it funds, the remaining cheddar goes to me as the seller, since I'm on title.

2. My second question is to all Wholesalers (ok wholesalers only now lol)  Since the property is no longer a SS and is now an REO, I've heard lenders don't do assignments.  How do you get around this problem then?  You're using the end-buyers money to cash you out.  (hope stephanie replies bcuz she's the "Wholesale Queen")

I have 20k at stake here. When it "was" a SS I got the bank to accept 90k and I have it sold at 110k.  I don't want to lose this deal.   biggrin

BTW, I befriended (and flirted) the new agent hired by the bank and got her to "work" with me.  I told her my sob story and made her an offer to tie it up before anyone else and she is not going to take any more offers because she wants to help me (and likes me lol).  Besides we already have the end-buyer in place so why would she go elsewhere for love, right?

 anon

-toro

[tampasteph]

Here's a link to a post I wrote that explains how to get around the non-assignment issue:
http://www.flipthiswholesaler.net/2008/06/can-you-assign-an-reo/

There are several ways to do it.  I use a simultaneous closing.

Steph

[bashir]

Since it's an REO you can only double close if the end buyer is using hard money, or a conventional loan without seasoning.

That's about all you have I believe. Is the end buyer a Owner Occ.?

[tampasteph]

Sorry, should have added that you need to be working with a cash or hard money buyer, or a lender who will not have title seasoning reqs.

FHA is not going to work, nor will most conventional lenders.