Fear is real and bubble Burst, cont from overcoming fear post!

I tell you this is part of your due diligence and exactly why I don't just run out and make offers.

I am calling more attorneys, but I am deflated right now! I understand she may be wanting business too, but I also think she is probably right about the litigation, and not be able to assign many contracts. Not happy.

When you assign a deal the original mortgage is paid off. Has nothing to do with whether the mortgage is transferable. You are not transferring the mortgage, your buyer is paying it off! The only contact we have with the sellers mortgage company is to request the payoff amount.

Bubble is back!! You can assign all you want. You just have to have a property that one of your cash buyers wants!!

So you know what that means right? Quit worrying about anything other than finding, evaluating and making offers on properties that you can assign or double close to your list of REAL cash buyers. Anything else is a BIG waste of time.

As far as contracts, have you been to a local REI meeting and asked what the investors that are doing deals use??? Not the other 50 newbies or bloggers but the investors that are trying to sell their properties at the meeting? Of course if they are buying through an agent, the agent supplies the legal contracts anyway. You want to know what contracts they use when they buy directly from a seller, no agent involved. What contracts do they use to sell that property to their cash buyers for a double closing or contract assignment.

Maybe even talk to one of the investor friendly agents that will be at the REI meeting!!

Good luck and assign a deal!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLc

Thank you for your help. I still am not really understanding about being able to assign or not. The attorney said that most mortgages from banks can't be assigned. She said do further research??? How is the original mortgage paid Off? I thought we are catching people with troubled properties a good deal of the time? I am confused. Can you explain more about this.

Also all the rei clubs are disbanded here. Closest one is in the northern part of the state and not practical for me to get to. Still not sure about contracts either? Tammy

Is this right? My buyer is paying off the mortgage, but what did you mean about, When you assign a deal the original mortgage is paid off??? Tammy

I'd like to add my take on this. First of all there are some fast talking quack attorneys out there just like there are quack doctors. You have to really know your audience. Also part of due diligence is learning and that is what we are doing. So we need to understand what a contract is. I start with a definition.

con·tract   /n., adj., and usually for v. 15–17, 21, 22 ˈkɒntrækt; otherwise v. kənˈtrækt/ Show Spelled[n., adj., and usually for v. 15–17, 21, 22 kon-trakt; otherwise v. kuhn-trakt] Show IPA
noun
1. an agreement between two or more parties for the doing or not doing of something specified.
2. an agreement enforceable by law.
3. the written form of such an agreement.
4. the division of law dealing with contracts.
5. Also called contract bridge . a variety of bridge in which the side that wins the bid can earn toward game only that number of tricks named in the contract, additional points being credited above the line. Compare auction bridge.

I understand where you are coming from and that is part of why I think it is taking me so long to get it done.

Use assignment form from forms and docs and get the property locked up on the assignment contract with the verbiage and or assigns. Then we pass it to the end buyer. We have an agreement with the buyer to pay us a fee or get the money when the deal closes. I hope this helps and I am sure that if I am wrong someone else will chime in.

let me add another piece to this or more of my explanation.

The seller is (A) and the buyer is (B) and we are the matchmaker connecting them. We lock up the property on contract between seller and our name as buyer "and or assigns" then pass it to the buyer. We take it to the escrow company/Title company or an attorney to process. I think it is best to use Title company because we use them anyway for a preliminary title report to make sure we have a clear title.

JUst still wondering what Michael meant???

You are assigning your contract to another buyer for a fee.

The buyer will pay off the mortgage.

Did you get my pm from the other day? Can you or Michael explain why when I told the attorney what I wanted to do, which was to assign contracts, that she told me that most mortgages are through a bank have a clause that states that the mortgages are non transferrable, and therefore not able to be assigned? Do I need to say something different???

I don't think so.

Chances are that if she's saying that, she's never done an assignment before or didn't know what it was called.

I would suggest moving on and calling other attorneys. You'll spend more time trying to educate this one which will be an exercise in futility. I've had a similar experience with an agent before, it was a waste of time.

As others have explained, when dealing with assignments you have nothing to do with mortgages, you're only assigning your position in the contract, nothing else.

Keep pushing on.

I think your attorney misunderstood what you were saying.
1. The attorney was correct in telling you that most MORTGAGES are not assumable or assignable.
2. You only have to deal with these issues when you do a "subject to" deal or a lease/option.
3. You will be getting a property under contract and assigning the contract to your buyer.
4. You are assigning a contract NOT a mortgage.
5. The only information you need from the seller concerning his existing mortgage is the pay off amount.
6. Your buyer will PAY OFF the existing mortgage at closing, he will not assume it.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

You have clarified and solved my problem. I did mention that I wanted to assign, but I also said that I wanted to do subject to/lease options, so this is why she told me what she did. Now just need to figure out how to do the lease options/subject to investing.

You need to pick one or the other

Wholesaling (Assigning Contracts)

or

Lease Options

Never try more than one thing at a time.

You will run around in circles.

I think it is a good idea to let the deal/seller/property determine what strategy you use. I know if I stuck strictly to wholesaling I would have not made several L/O deals that cash flow and have really great back ends! ($60,000) Lots of deals won't work as a wholesale, I sure don't kick the opportunity to the curb because I "have" to do one or the other!!

I wholesale REOs the majority of the time. They can't be assigned or I should say I have never seen an assignable contract come from a major lender. So you must be ready to double close or do the LLC or Trust strategy. If you have a trusted buyer, they can go on the contract as the buyer.

No question my best deals have come from unlisted motivated sellers, but not enough of them to keep my pipeline full. Therefore I have the capability and systems in place to wholesale REOs also.

Never say Never! Everyone should expand their capabilities at all times. Never limit yourself.

Just my opinion!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

lease option and when I need to have the wholesaling going on. Thank you both for the input. I guess I don't want to spread myself all around, but want to focus on these two things.