South Carolina: Issues w/ HUD...

[Bradley Bladon]

Thanks, in advance...(2) questions here...

1- I've read all over the net where contract assignment isn't legal...some comments are general and some are state specific. I've not seen anywhere that the SC Title Code(s) prohibit it.  That being said, for you SC Wholesalers out there, asking what would seem an obvious answered question, have you had any issues w/ it being contested, questioned or otherwise by an attorney or title company?  Is wholesaling in SC pretty standard or do you have to have that "one attorney" that kinda works in the "gray" area of the law...(which I'm not interested in)

2- I've read else where that selling a home w/in 90 days causes problems w/ HUD / FHA in terms of the type of financing/mortgage a prospective buyer can get. So, as a "house flipper" who has acquired my assigned contract run into trouble moving his/her rehabbed home to buyers b/c of this 90 rule? Most loans are FHA now, so I would think that if Jim and Jane want to buy this newly rehabbed house from said "house flipper" they may have trouble getting a loan w/ their bank b/c of the 90 day rules...Why do I care...? I don't directly b/c I'm just wholesaling it, but it would seem that it may limit the scope of investors I can seek if they have to sit on a property for 3-4 months to sell it...Maybe I'm missing something....or reading old legislation...

[David Chwaszczewski]

@Bradley Bladon I think you have to step back a second.....If you are WHOLESALING a property then it will be a typical transaction. Wholesale means you buy the property and take ownership of it, then you will sell it at a discount to another buyer. If you are assigning a contract, then you are selling the rights to the contract to purchase the home. We buy homes on assignment and don't have any issues at all. It needs to be disclosed on the HUD. There is nothing wrong with that at all in SC (as of now).