OfflineWould someone in the DG family please help with this answer. I know that assignment of contract can be done with REO's but can they with a HUD as wel? This area is a hot zip code in my city and Realtors are holding an open house and are accepting bids on it till the end of the week. But I need a POF letter and 100.00 earnest money. I need help on weather this will work as an assignment?
I lock it on contract at .65 off FMV (if they accept my bid) I submit a POF letter and 100.00 then submit to my buyers list hopefully HUD will allow a long enough days on contract to pass it on to my invetor buyer (30 days). It is a 3BD 1full Ba 1 half ba, 2 3/4 ba. Needs maybe about 15k in cosmetic repairs including landscaping. Any advice appreciated!!
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096
The contract should state if assignments are allowed or not. Just ask to review it before submitting an offer. I've submitted offers on HUD properties before and it specifically said it was not assignable, and you couldn't alter their contract in any way (for the property I was interested in).
Everything's negotiable, so inquire on it. There are also other options like double closes too. Good luck - let us know how it goes!
- Tom
I am putting offers on HUD properties. The realtor is handling writing the offers. The property has to be 10 days after bidding, but I am not sure. After that is available to the public and investors.So far I haven't close any deal.
Good luck to you! Halina
Thanks for the tip. I just called broker/realtor he said it must be owner occupied. So I take it not assignable. What I wanted to do is pass it on to my investor buyer and have him make the owner occupant a loan to purchase. So then I can double close it?
Thank You DG Family!
"I am a small and a lonely grape clutching the vine yet thou hast made me different from all others. Verily, there must be a special place for me. Guide me, Help me, Show me the way......"
Guide me God.--------- OG Mandino The Greatest Salesman in the World
"If it is to be it is up to me"----
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096
That's great, this Hud deal is open to investors and a bid was accepted a few days ago but buyer backed out; found another deal instead. Also Found out that the earnest money should be 1% of offer once bid is accepted. So a bidding I will do.....
Good luck to you too and Happy Profits!
P.U.S.H.= Persever Until Something Happens---Dean Graziosi
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096
there are some pretty important questions that need to be answered about HUD Fannie’s and Freddie’s that I almost found out about the hard way. Although there may be a way to skirt the assignment of contract issue, you need to be sure, for your sake and potential buyer, that there are no deed restrictions associated with the property. Your realtor should know, and if not can find out for you.
The HUD contract doesn't allow for assignment. I'm a Realtor/investor and I've been involved with the purchases of tons of both HUD and REO properties and I can't remember ever seeing either one allowing for assignment. It is spelled out very clearly in the corporate addendums.
You will have to double close them.