Can I wholesale a short sale in Chicago?

Question

Hello BP Family,

I have a meeting with a seller this week who things they need a short sale. Is it possible to wholesale a short sale or will i have to use transactional funding as a means of closing the deal?

I believe the lender is HSBC and most short sale addendums say that that the conttacts cannot be assigned.

Help me before I put my foot in my mouth .

Brie Schmidt · Answer

correct. I have never seen a SS addendum that allows assignments. I have clients closing on one next week and the loan fell through so they are using a HML - The lender would not allow us to change the name on the original contract

Account Closed · Answer

@Tiauna Perkins, I agree with @Brie Schmidt the Short Sale lender will not allow the parties to change the name on the Contract.

Tiauna Perkins · Answer

Thanks Brie and Ravi,

Ravi I heard this before in one of the BP Podcasts on how to simply sell the LLC. Starting out as a newbie this would cost me money but is a good technique thanks for mentioning it once again.

I have sold short sales as a Realtor and do recall the "no assignment clause" but as you mentioned the sellers lender may make me keep the property for a certain amont of time. I would hate to get knee deep in this and have to back out ..soooooo I dont know which way I will go I might just turn it into a listing instead of trying to buy it as it appears to have a lot of red tape.

Thanks guys for walking though this with me.

Ravi P. · Answer

I just closed on a short sale in Sept. the lender prohibited us from reselling the property for 120% or more of the pirchase price for 90 days after closing. I do not recall who the lender was.

The only way I could think you can get around this is to purchase the property in a Corp. or LLC. and then have the buyer purchase the company. Not sure If that would work. I recommend you consult with an attorney.

Ravi

Can I wholesale a short sale in Chicago?

Can I wholesale a short sale in Chicago?

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