Assignment of contracts/ How can I get my fee @ closing?

2 Replies

Is there anyway to assign contracts for a foreclosure? I have contacted some Reo departments and they stated that they do not do assignment of contracts. Does anyone know how I can get my fee out at closing, when dealing with a foreclosure?

William

From what I understand one must be a licensed entity, an actual participant or contracted by one of the participants to the transaction in order to appear on the HUD-1 statement. Only a seller or one who has obtained power of attorney can sell a property. Any proceeds can be directed to be distributed by an escrow agent. The escrow agent in turn can only pay proceeds from the sale to licensed entities. All other fees are considered third party. I don't quite understand the question. Can you elaborate?

The bank is just trying to deal with principals rather than bird dogs such as yourself. If you have the funds available then it is pretty easy to just purchase the REO and then resell it to another buyer via a new HUD-1. This is why you occassionally see messages on this board stating "need to borrow $100K by this Friday" or "need $100K for short term loan".

Banks say they do this because they don't want to see inflated prices from speculative investing. This is partially true; they also do this because they want to get as much for themselves as they can!