OfflineI am a newbie at REI so here it is. I have a friend who's home is in foreclosure. I would like to find a buyer to purchase the home for a profit (assign the deal). I wonder how do I approach the bank in this case mortgage company regarding purchasing the foreclosed property. I have no money so I will have to use "flash funding" sources to purchase and then assign the deal to another buyer. Please help with the necessary steps.
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Angela L. Davis
"To God Be The Glory"
If your friend is in foreclosure, it's premature for you to try to contact the bank because it's not their property yet. At this stage your friend would have to contract the bank & try to do a short sale. The bank doesn't own the property until it goes to county auction, & if there are no bids, or the bids do not reach the judgement amount the bank will get it back. After that, they will list it for sale on MLS with a broker.
Now if the bank does own the house, then you can buy it yourself(most banks
will not allow assignments). If using "flash cash funding" you would just need a buyer lined up to buy it from you. There would be 2 separate transactions, the bank to you, you to the buyer, so no need for assignment.