Subject too Foreclosure Help
Hello I have some questions in regards to wholesaling. Now I understand wholesaling you are basically selling the contract to a new buyer. I have had conversations with wholesaling mentors so I have a previous knowledge to how to get leads and buyers. I have also invested in real estate attorneys and have gotten purchase and sellers agreement & Assignment of Purchase agreement drawn up to help me seal my deals. So here is one of a few questions based off different scenarios I have come across.
Example 1. I have a homeowner whom is currently in foreclosure with a auction date that is 8 weeks away. The seller is open for me doing a subject too on where I would be carrying the existing loan however she understands that I am actually not buying the house I am just selling the contract to a buyer. The fair market value of the home is 1 million. The payoff on the loan is 980,000. The reinstatement of the loan is 189,000. The seller is open to all options she just doesn't want the home to foreclose. When learning I was taught that when you do a subject too; you would purchase the home for whats due on the loan. Can I put my assignment fee on a subject too purchase and seller agreement? If its cost $189,000 to reinstate the loan and I assign the home for $200,000? The buyer will now have a subject to contract yet I made $11,000 off the deal. These are not the actual figures btw.
I know this isnt the typical methods of wholesaling but I wanted to know if anyone has done a deal as such.