Short Sale, Can I wholesale.

3 Replies

I have a few properties that are worth less than what the owner owe. How can they get permission to short sale their home and will the bank stop me from wholesaling their house to a buyer?

If you're wholesaling a short short sale and making a profit, you're taking that money right out of the bank's pocket. If the seller sold it directly to your end buyer for the price you're getting, the bank would net more. So, they are going to try to make this difficult for you.  The bank almost certainly forbid any assignments.  You'll probably need to do a double closing and use transactional funding.  They may also put in a minimum time you have to hold before transferring the property to someone else.

Jon Holdman, Flying Phoenix LLC

Originally posted by @Jon Holdman :

If you're wholesaling a short short sale and making a profit, you're taking that money right out of the bank's pocket. If the seller sold it directly to your end buyer for the price you're getting, the bank would net more. So, they are going to try to make this difficult for you.  The bank almost certainly forbid any assignments.  You'll probably need to do a double closing and use transactional funding.  They may also put in a minimum time you have to hold before transferring the property to someone else.

 thanks a lot John.

It is possible to wholesale a short sale and has been done frequently, but the banks are less forgiving now and it is tougher to get material discounts.  The bank will require a realtor to submit the short sale package/application to them, so you will need one involved.  Do not use the first realtor that you may know - get one well experienced in short sales.  The banks approval will preclude assignments so you will have to double close and the approval will likely have at least a 30 day holding period requirement, which does make it more challenging to obtain transactional funding.

 
Florida does still have a lot of foreclosures which does make a short sale more possible compared to other areas of the country.

Ted Akers, Transactional Funder