Assignments are they being rejected by banks?

Hello, I read your post and wanted to let you know that I have had 3 banks accept contracts with an assignment clause. It dosen't hurt to submit an offer with "and/or assigns" after your name, the worst that will happen is the will not accept the contract. Besides realtors, with all due respect, do not work for the bank. Depending on the bank, banks are not in the home owning business, they are in the lending business. I would advise you to find a realtor who is willing to work with you and not to tell you what you can and can not do or what works and what doesn't. you need a realtor who wants to work with you.

it took me a while but I have a realtor who is an asset to my team.

Good luck

have said it any better. Try and/or assigns first, if the bank doesn't accept it then do a simultaneous or double closing.

KimmyJ
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Thanks for your reply i have a feeling you are very right. The banks are the one that is ultimatly responsible for accepting not the reo aggent. I think alot of realtors have thier investors they like to work with i think it will take some time to find my realtor. I guess i have to kiss alot of frogs to find my prince.Michelle

Hi everyone. Does anyone know if the current forms at deangraziosi.com/allforms are ok to use in Indiana "as is", or has someone already modified them for use in Indiana? I'd love to get started asap but seem to be spinning my wheels in our little community trying to find a re attorney to review them.

Funny thing if you ask a realtor about double closings they are stund. I even asked if they were familar to one day doe they had no idea.MichelleNicole

michelle have you tried to put an ad on craigslist to find a realtor? thats how I found the RE agent I am currently working with.

I forgot to mention,,, My RE agent and I have ran into situations where we will submit an offer on an reo, and most reo's are priced to sell, but we put in low offers, up to 50% below the asking price. you can always go higher. Back to what I was going to say is that some agents representing an reo will see the offer and not submit it, they will "hold on" to the offer to see if higher offers come in. So what I learned from this site was to submit an request of written refusal from the bank,which will be on the banks letter head if they refuse your offer, that forces the listing agent to submit the offer. I forgot who posted that here but it works

Might be a good place to look for local realtor willing to work with investors.I've talked to about 10 realtors 4 are willing to work with investors but they are tring to steer away investors.Is your realtor an REO aggent or regular MLS aggent i wonder if thats were iam going wrong on my search? Lots of frogs out there!!! MichelleNicole

Wow thats pretty good force the reo to submit the offer.I guess thats deffinately a good way to get the REO aggent to do thier job with out holding on to the offers.I deffinately have heard about the aggents holding and create a bidding war! I guess thats what is going on out here in cali as more of the reo's inventory is going down.I think the tax credit is getting more people off the porch and are looking to buy.MichelleNicole

Was just on the phone with a realtor she said most banks want you to pre qualify before they will look at the offer. These are the words from her but she was the first to say she didnt know about double closings. Funny thing i felt like she was baiting me! She said she had lost alot of properties to cash buyers ie Investors.
MichelleNicole

If a bank receives more than one offer on an REO and they have a cash buyer versus someone who will get financing and then doing a double closing they will almost always take the cash offer. With REO's in my area you will not get a deal accepted by the bank if you try to offer 40% below asking price. Many of these listings are having multiple offers and they are going for more than the listing price.

In the Edge Home Study Course, Matt Larson stated in his session that he is looking for good deals that aren't REO's because there is less competition for them. He also stated that if he finds the right REO, he will make an offer on it.

As stated earlier, if you want to make an offer, you can do so and your realtor should be presenting all offers regardless of what you offer. You need to know what your market is like and then select the properties you feel comfortable making an offer on based on your exit strategy.

It all depends on the bank if they accept and/or assign.
And you dont need a approval letter use a proof of funds letter

Ive been talking to alot of reo agent and investor and they are saying that they are holding the listing to start a bidding war and alot of buyers are buying up to 20k above asking price because ofthe tax credit .But the inventory is not low there just letting out acouple of listing at a time.
But ive heard that around in a month or two wells fargo is going to release there whole inventory.

thats what i have been hearing also that the investors are asking above 20 % creating a biding war.That is good news about wells fargo.One Realtor said there is going to be a new wave of foreclosures to come to play.I guess the 5 year arms are going to adjust i think.MichelleNicole

I think there is going to be a lot of new Investors that are getting them selves into trouble, offering above there maximum allowable offer. I already ran into a few of them who fell into this category.

Just wondering what area you are in because listing real estate agents represent their clients and they have the duty to submit all offers unless it was agreed upon between them not to submit certain offers. In REOs, the agents are to submit all offer unless otherwise instructed, especially offers that are outrageously low or "frivolous" -- I know I've been there and done that.

If the agent is refusing to submit offers and you have proof that he is "holding" your offers, ask to speak with the broker in charge. Also, even though it's ideal, it is not really practiced -- agents do not send rejections -- they call each other, just like banks send emails to reject an offer.

I know thats what they are suppose to do but do all of them actually do it! Yes I think alot of investors are getting the auction type of fever when submitting these over the asking price offers. I had a conversation with another realtor and she had 13 over the top offers by 20% above asking price. I hope they know what they are doing???? MichelleNicole

I want to add something very important regarding assigning contracts. I learned in a seminar from one big guru in the area. The bank most likely will not accept an offer with the clause "and or assigns", the second option you have is submit the offer under your name and at the end of the contract you need to add this: "Vesting to be determined at close of escrow". I know this works because the bank accepted one of my offers with these terms, in fact they didn't even noticed. I hope this information helps and let's get prepapred for the new foreclosures wave that they say is coming very soon!

Hi I just wanted to commet that I have had banks, 3 in fact, accept my offer with an assignment clause to where I was able to fully assign one of them to my end buyer. A big local guru obviously knows what he or she is talking about,but the key word is "most likely". you never know the outcome if you don't try! When people tell other people that things cant be done, then most of the time they will think that it cant, but you never know untill you try. I had a re agent tell me "there is no way in a million years that a bank will accept a contract with an assignment clause" man was she wrong!

The point I guess I am trying to make is that just becuse someone tells me I can't do something, I do it anwyays, I like to "go against the tide" and I am successful because of that mentality.

If you're working with Fannie Mae, they'll write up the offer the way they see fit. Other banks are more flexible. If you're not working with a Fannie home, I would definitely try to submit your offer with and/or assigns.

KimmyJ
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Federal law prohibits financial institutions from not accepting assignments to a trust. See Garn-St.Germain Federal Depository Institution Act 1982. D

After talking to so many different realtors and advice from alot of people on this wonderful site.I think that the best thing is just go do it you wont know until you do! And dont be affraid of the word no. Keep your heart out of it and move to the next one! MichelleNicole

The word No is a simple two letter word, even thou it's powerful but don't take it to heart and always have a another option at hand that will work. CA is not the only state with this problem with assigning on Short Sales, so don't give up & don't waste your time with agents that don't want to work with you because their wasting your precious time, you will find a few that will work with you. What I learned is if you find an agent that has only been in the business for 2 years or less their more willing to do what you tell them to do because their just starting out also, keep that agent when you find one. Much success to you!

Everyone Can Make A Different!
John A.

The bank I had trouble with is Bank of America...absolutely NO assigns and need a preapproval letter. Oh well, on to the next!

Dawn

B of A has tranferred many of their properties to Fannie Mae. Fannie is very difficult to work with. Just keep putting in offers. That's all you can do.

KimmyJ
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This question may sound silly, but I just want to know for sure before I use the two terms interchangeably if, in fact, they are different. Thanks in advance for the clarification.

Suzi

Hey guys, I just started with DG strategies and my first course was assigment of contracts, I'm excited with all this however have so many doubts, I was just wondering if is there anyone from Tulsa here that I can talk to about experiences.
Thanks
Carlos

When doing your market analysis you will know who the property holder is. REO sellers want to control the deal, that is what real estate is all about, controlling the buying and selling. Accepted offers will be followed by an addendum restricting the buyer to the best interest of the REO. Stay away from the known REO's limiting your options. There are enough deals that you dont have to beat yourself up against the deed and option restricting REO's.

hey new on the site trying to get a thirty days close on property reo agent saying it can take up to 90 days

Bringing this back to life. There is some great information here. I did have a question regarding post #18. When you put "Vesting to be determined at close of escrow" on your contract you are basically saying at closing you will put a name down. In simple terms you are (if assigning) putting your end buyers name on the contract. You are just skipping the step of having to assign the contract and you can just enter your buyers name at closing. Sound about right? To whomever and all who have done this recently how has this worked for you and what problems come up? To me it just seems to be a rewording of "and/or assigns". Please let me know.

Richard
Bothell, WA