Updated about 14 years ago on . Most recent reply
Short sale undercontract
If you have a short sale under contract but the bank has a provision that the contract can not be assigned, can you get around this?
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The bank may have a restriction as well. Most banks will have you sign an addendum to the contract or an anti flip affidavit. I typically don't wholesale my short sales because this will be a big problem. the short sale banks are considering double closing's fraud.
What I would do is one of 2 things. Terminate your contract and submit your end buyers contract in your place for the same amount. Have a separate agreement with your end buyer that they agree to pay you the money as a finders fee outside of closing.
Another way to do it is to buy the house in a disposable LLC. Add your end buyer before closing as a manager to the LLC and then after closing sell all your interest in the LLC to your end buyer. However I'm not an attorney and I'm not giving legal advice. In Colorado this could still be a violation of the Colorado Foreclosure Protection Act.