Assigning Short Sales

I don't know why you can't do an assignment on a short sale. Never thought of that before. But because a short sale takes so long for all the approvals, and paper work, not sure unless you had an end buyer, if the bank would approve of that.
I would like to find that out too.
Welcome to the site, and I wish you the best on your new journey!
Sandi

99% of the time it won't work unfortunately. The banks will have their own contracts and it will specifically say you can't assign, and any alteration to their contract makes it void. In addition, for a short sale, they want to approve the buyer, just like a normal purchase.

- Tom

that you can do this without actually buying and flipping. It goes against the premise of what a short sale is. Think about it from the bank's perspective.

Like mentioned above banks have a non assignablity clause in the contract which is why you can not do assignments with any property where a bank is involved in approving an offer. Doing a double closing using transactional funding is generally a better way to go.

Double closing? Transactional funding? Not really sure how a double closing works or what Transactional funding is but will look into both to see how I can maybe do deals w/ short sales.

I found a short sale that is not on any mls yet and the lender is ready to go into foreclosure. The realtor says they will accept anywhere in the mid 60,s if the offer is cash. I checked for comps and the only good comp. (same year, same size, and same area) sold for $47,000 about a month ago. I want to assign this to an investor so I need to be around $30,000 to $35,000. I think because it is distressed this could work.

My questions are...
1) To assign this property would I have to do a double close?

2)Is my offer more likely to be accepted if I include repairs in the purchase by asking the lender to include it in escrow, bringing the purchase price up? Or is it better to make a lower offer and include bids for repairs in my offer?

Some short sales can't be resold for 90 days. Check the contract. If you can flip right away that you can use Transactional funds and double close. Your buyer must have his funds in escrow 24 hours before the a to b closing.

You want to deduct the repair/rehab costs from your offer.

Also, you are doing a double close, NOT an assignment. Two totally different exit strategies. You can not assign 99% of short sale contracts, just like REOs can't be assigned.

Michael Mangham
MD Home Acquisitions LLC