assigning a contract

3 Replies

i have a verbal deal struck wth RE agent on short sale...i want to have my offer to purchase contract have an addendum or whatever it needs to make the contract assignable. my RE agent says he cant write that in that all he can do is say "see attached" and i can put it in, but he says to speak w a lawyer....i dont want to lose this deal over "time". what is the easiest, and quickest, and still legal to be able to assign the contract?

Most likely the bank will reject the contract or removed whatever mechanism you've used to make it assignable. They know you're going to take an assignment fee and they don't want that. Why should they? They're talking a haircut, and some of that is going in your pocket.

The common guidance is to just put " and/or assigns" as the buyer.

You'll probably have to do a double close.

I'm an agent on a short sale deal here in dallas, tx with a finder and cash investor. The finder has their assignment forms, my broker says we can insert a special provision but I was thinking of attaching the assignment contract as an addendum. My concern is showing a guarantee of funds which the finder does not have unless the offer is accepted.

Other than this I have another cash deal on the table with the same finder and investor for the purchase of a conventional sale. Can an assignment contract be used?

Chevis and winter,

trying to get an assignement of contract clause, in any part of your contract, addendum or otherwise, is a collosal waste of your time. Banks do not allow assignements for short sales or REO properties.

Your best option for both scenarios, is to double close as Jon suggested. This is accomplished by using transactional funding and the funder can provide the prof of funds letter to satisy the seller and agents.
You will have two escrow expenses and the cost of the borrowed funds (rates vary depending on amount, time, and options but should be 2-3 points plus a small fee.
You will need to have a title company on board who is capable and understands double closings. There is nothing illegal about it and I see these transactions on a weekly basis so I know they work, don't let some title companies or RE agents tell you otherwise. Just because THEY can't do it does not mean YOU can't!

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