Overcoming Non-Assignable contract clause on Bank REO's in CA

Have never heard of having to provide a credit report but I have always used a friends POF or used coastal-funding. And then do a back to back closing. Don't know if they have changed the laws in CA though. Something to check into!!

Do a simultaneous or double closing with your end buyer. Chicago Title can do both of these types of closings. Use www.coastal-funding.com for your POF letter. You do not need to provide your report when offering all cash. Worst case scenario add your end buyer to the contract, close with the end buyer's funds. After escrow you quitclaim the deed to the end buyer taking you off of title.

KimmyJ
Press on...

Doesn't the POF have to be in your name? Also how do you get around the Non-Assignment Clause on REO's? Thanks....

POF does not need to be in your name and if you do a double closing you are not assigning the property.You are actually taking ownership of it for like an hour or so. Or if they will not do a double closing (some banks will not allow it) do what Kimmy said put your end buyer on the contract along with your name and after you close quitclaim the deed over.

Where do I disclose that its going to be a double closing? Also in Ca on a bank owned Property, do I have to use the standard CA approved purchase contract and if so, how do I incorporate an escape clause? Any other tips on writing contracts in Cali? I heard it gets very tricky!

Sorry I am not for sure how things go in Cali but as far as a double closing you don't need to disclose it on the contract you just need to make sure the title company you are closing with deals with double closings.

I'm in CA and you don't disclose you're going to do a simultaneous closing on the purchase agreement. You just put down that you are requesting a certain title company and representative. Chicago Title will do it for you. Where are you in CA because I have a kick butt (I hope I can say that on here, if not sorry DG)title lady from Chicago Title? She is an investor herself and knows most of the strategies that I have talked about with her. You can also use Old School Title. Just PM and I will give you her information. If you're going through a realtor you have to use the standard CA Realtor contracts. If you're working with FSBO, you can use your own.

KimmyJ
Press on...

Chris do you have an LLC formed yet,you need one to protect yourself.Banks only allow double closings when they do Short sales.The only way I know to flip a REO property to a buyer without the bank having a problem is to add your buyer to your contract with the bank.Talk to your buyer,if they agree and you agreed to a fee,call the bank and tell them you want to add a partner to the contract,the bank should not have a problem with it.You and your buyer go to closing,after you close with the Bank,tell the escrow agent or attorney that you want to do a Quitclaim deed to your buyer,this will forward all of your ownership rights to the property to your buyer and you get your fee that you and the buyer agreed on.

whurndon

H&H PROPERTY SOLUTIONS LLC

is getting an offer accepted. I have researched and personally been shown examples of wholesalers, assigners getting around nearly all the banks obstacles. My short fall is getting offers accepted that can be turned for a $5000 profit. The realtors in Phoenix are pushing prices up by sitting on offers and encouraging higher offers. The properties dont close on the offers because the appraisals come in low.
I have seen 2bd condos list by HUD for $70K, offer accepted for $90K against $125K comps. 1 month later it is back on the market, boomerang.

They also are giving "pocket listings" to favorable parties that can close for cash. Would you believe with all the foreclosures in Phoenix realtors are misleadng buyers to believe there is a "shortage" of homes? Propaganda and greed. The same scenario is developing that grew the bouble of 2005.

Get a proof of funds ONLY after your market analysis shows your price is competitive and has room to close in a double or can bring a cash buyer to add to title. I am all over the procedures just falling short on offers being accepted.....make an offer, then apply the best tactic for a profit. Worst case is withdraw the offer in 10 day inspection period.

Now that's what I love about this site. Great info everyone and the different strategies to get around the issues seem to always be there. Awesome!!! I would agree with 100 K Homes though that toughest thing out there would be getting offers accepted. I haven't even made an offer yet becuase it's been too tough to find something good enough that would afford the opportunity to do something like a double closing!

Thanks again for the great read...

Thanks to all for the info. Adding the buyer , then doing a quit claim on the deed is the way to go.

Randy S.
Elkton ,MD