Assigning a Contract to End Buyer that has FHA loan ...

[Robert Del Rosario]

Hello, first off I'd like to thank everyone who has contributed to this community ... I must say that I ran into this website a LONG time ago but had no idea there was a forums section. So this is my new favorite site for RE besides [REMOVED].

Anyways, I started off this new years 2010 saying to myself ... enough is enough for analysis paralysis and just really start putting out offers. So that's what I've been doing ... of course doing as much due diligence as possible and planning my exit and what not. I've started a buyers list and found a buyer looking for a property in a specific area. I was actually looking through ads and decided to respond to an ad placed by a Realtor saying she needed help finding a place for a family. I called and got the criteria of the home they wanted to purchase. The family is pre-Approved for an FHA loan. The home they need though is very limited to a certain area for religious reasons. I found a home and had my agent put in an offer ... and that's where I'm at now.

So ... my questions are ...
1.) I found that assigning this property would probably be the easy way out ... but is there a limit to what I put as an assignment fee?

2.) What documents would I need to close this assignment? Would I need some type of disclosure agreement signed too?

3.) If for some reason I don't assign the contract and would have to do a simultaneous close, I'm a little confused as to what happens exactly at the title company ... since I have my end buyer ... I don't need to use my own money to fund the transaction between me and the seller correct?

Thank you very much in advance.

[Jon Holdman]

Since there's an agent involved, ask them straight up how you're going to get paid. Assignments to buyers with conventional financing can be tricky because the lender doesn't like the assignment fee. Somehow, they have no issue with RE commissions, but they don't like other fees. So, they might force the buyer to pay your fee out of pocket, and base the loan on the price without the fee. Be sure the buyer makes the lender aware of the situation to avoid any last minute problems.