WILL FANNIE MAE ACCEPT AN ASSIGNMENT CLAUSE?

[realestateconnector]

Is it safe to write "and/or assigns" in an offer on a FannieMae property or similiar verbage?

[nsu1997]

Is it safe to write "and/or assigns" in an offer on a FannieMae property or similiar verbage?

Not if you want it accepted. All that tells them is "recent seminar graduate, no money, can't close, DENY." Any institutionally owned property will probably not be assignable. However that still leaves you with several choices: close in an LLC and sell it at closing, do a double escrow, a double/simultaneous close, or close in a land trust and assign the beneficial interest.

I can't think of any reason to use that clause actually. If the contract doesn't specifically state it's not assignable, then it's assignable. No need to write it in. And if it's not assignable and you write it in anyway well they just won't approve your contract.

[ethomson]

I can't tell you for sure but I've gone to a couple of auctions recently that are all Fannie Mae properties and they do not accept assigns.  Could be because it is an auction but I am agreeing with the previous poster that an institutionally owned property cannot be assigned.  I think that type of clause is better suited for conventional, owner financing, lease purchase, etc.  A friend of mine has a private investor that lends him money to close, my friend wholesales the property before closing so it is turned within a matter of hours.  His investor gets his money back same day and charges a small fee.  That may be a good option if you can find that ever so valuable private investor!

[realestateconnector]

So when I write the contract, it should be written as 6409 Stoll Lane LLC?

[hassansr]

Ditto, "no". The issue you have if you are dealing with an end buyer that is using hard money or conventional mortgage financing is the fact that you dont have title. To remedy that you should only deal with cash buyers or those with hard money or private funding. Do a double close or buy in llc as mentioned above