How to obtain title from a wholesaler

Question

I am needing clarification on assumption. We are purchasing a home from a wholesaler who closes tomorrow...I assumed the title company would have something to do with our assumption...but apparently that isn't correct? How will title actually pass to us? The wholesaler we are using is brand new...this is his first closing and our first time closing through assumption...add to that a title company that is hundreds of miles away, with a lack of communication.

Any info is helpful!

Angie Shires · Answer

@Patrick Daniel  we got the assumption part cleared up, but the brother and sister who own the property are in disagreement about a lien...going to be delayed over drama...but we will end up getting there.

It is just a new person problem, he didn’t communicate well with title or owners. A learning experience for both of us!

Jonathan Marcus · Answer

The title company ran the title with the wholesaler as the buyer. First tell them to change that and send them an amended contract showing them that you're the buyer; you bought the contract. Have the wholesaler issue an invoice for the amount of his/her cut and send it to the title company; he will then be added to the HUD-1 on the seller side of the transaction as an additional payee. At closing, the title company wires funds to the seller, wholesaler, tax authorities, etc...They create a new deed in your name.

John Underwood · Answer

The wholesaler does not own the property so they don't have title to the property. They only have an assignable contract on the property.

Show the title company the wholesale contract so that you prove to them you are the buyer.

Patrick Daniel · Answer

Did you end up getting the closing cleared up? Sounds like it was definitely a rookie wholesaler that got a deal before they know what to do with it.

Title companies that are not assignment savvy have ruined their share of contracts too.

Angie Shires · Answer

@Jonathan Marcus We started with an amended contract, then later they said they would close on the assignment, everything was good until today. I think they must not do this often either! We have the blind leading the blind, leading the blind! Haha

Angie Shires · Answer

I sent the assignment form yesterday...that's exactly how I thought it was supposed to work, but thought maybe I was missing something. Sounds like title is the one missing something, I will get with her again in the morning! Thanks @Barry Pekin & @John Underwood

Barry Pekin · Answer

@Angie Shires, the buyer is your wholesaler until you and he sign an assignment contract.  Once you have that, the rights and responsibilities of the buyer are transferred to you.  The title company would need to see this contract or they don't know who you are.

Barry Pekin · Answer

First, the assignment literally assigns the contract to you to take over, and then you close just like any other purchase.

Make sure you talk to the title company.  It should be like any other purchase/closing where the title gets conveyed to you.  I guess the answer is not to close until you're certain it's all happening properly.

I'm a new wholesaler... just starting, but I know that there are a lot of wholesalers who dive in without the appropriate training/knowledge.

Angie Shires · Answer

@Barry Pekin, my concern is the title company said they can't send me wiring instructions...they can only send to the buyer...I am the buyer...

How to obtain title from a wholesaler

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