This REO is assignable?

Question

Hello,

I couldn't decide how to take title of a REO we just got under contract.  In case we wanted to BRRR, I put the contract in name of my spouse and I to make delayed financing easier.  One day later, I regret that and wish I would have put in the name off the LLC because it is probably going to be a flip.  And, I want this to be a clean trail for tax/liability purposes.

The contract has been sent along to the bank to sign, and I don't want to screw anything up.  I downloaded the Purchase agreement and found all instances of the word 'assign' or 'assignable' and don't see anything that would prevent me from assigning to LLC at closing.

Or, maybe I missed the wording.  Can you tell me what to look for, please?

Thanks for your time.

Wayne Brooks · Answer

Agrre that a simple amendment changing the buyer name is the simplest.  This "middle man" co concerns me a bit though, but hard to say without knowing the exact structure,

Tom Gimer · Answer

Who are the members of the LLC? If the buyers own the LLC in equal membership percentages they would meet the definition of "the Insured" under the standard ALTA owners policy and would NOT have to purchase another policy.

If not, they could decline owners title insurance on the acquisition and purchase it for the LLC transfer. Title would just need to run judgments on the LLC.

Teri B. · Answer

False.  I was told today that the info was incorrect.  The title insurance will not transfer over.  I'd have to pay for that again.  So, $100 plus cost of policy.

Teri B. · Answer

Solved.  Found an awesome title company and they will just do a new warranty deed to the LLC for $100, at closing.  Insurance will 'transfer over' since done at the same time.  Whew!

Teri B. · Answer

So....the Middle man doesn't sign any forms that are not their own, so it's a no.  I know this because the title company is requiring their own internal form to be signed and I'm now switching title companies because we can't proceed otherwise as the seller won't comply.

I asked if I could get the buyer named switched (explained it's our LLC) while we were at it but that triggers it to be resubmitted to the real seller ... aka mortgage company.... again, which will invalidate my accepted offer.

Newbie lessons are the pits!

So, back to my original question.  What is the cheapest way to get it into LLC name?  I don't want to Quit Claim for title chain reasons.

I guess we could just flip in our personal names. Does that mean I can still run expenses through LLC name?

Thanks, again.

Teri B. · Answer

@Jason DiClemente

Sorry, I overlooked your post.  I'm an agent so I can do that.  Easier.   I'll call tomorrow and talk with them so I can get a better idea of options, as I get what Wayne means - hard to know exactly depending on their structure.  I'm guessing they act on behalf of the seller because there is no seller sign-off line on contract, only the auction company.

Thanks for the help, Gentlemen.

Teri B. · Answer

Awesome.  No, it wasn't on the MLS, so yes, thanks for clarifying.   How do I let them know?  Just notify the closing agent for the middle company via email?  I see varying assignment forms online.  Some require seller sign-off and some don't.  In this instance, is their sign-off needed?

Hopefully that's all the questions.  Appreciate the help.

This REO is assignable?

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