Do Banks Generally Allow Their REO's to be Assigned?

The answer is generally no. Usually you must fund the deal and double close. Banks usually will not accept an offer on a REO with out proof of funds and earnest money.

Hope this helps,
Michael Mangham
MD Home Acquisitions LLC

Most of the time they won't, however we just purchased an REO and the bank allowed assignability. Different banks have different guidelines and some handle properties on a case by case basis.

Don't assume anything, your best bet is to ask and see what happens, besides the worst they can do is say no.

I will try anything...!

Penny

NO! as someone else already said you'll have to first fund the property & then Assign the property , I've tried this before & usually the banks will not allow it at all .

I get it.

fund meaning paying for it in full or earnest money and then assigning, thanks for shedding some light,mikey

It is certainly true that most lender will not allow their properties to be assigned. The answer is to do a double closing. This is just like an assignment deal with a twist. In this case, line up a transactional lender like coastal-funding.com. Close on the property then turn right around and sell it on the same day to your buyer. You will need to check on the cost of borrowing the money and verify when your buyer can close. You can use this technique with banks because you are actually buying it even though it will only be for a short period.

Good Luck!

I have not seen one bank who will allow it. I have heard that it is because they see it as illegal for someone to enter into a contract to buy from them and then allow someone who did not enter into the original contract to step in and buy and you make money when you did not complete the purchase.

Personally who really cares if it is assigned and why should it really matter to the bank if you make money, as long as the deal closes and the bank gets paid.