Double Close Or Assignment
I have a small deal in contract. The property is worth 95,000, I have it in contract for 75,000 and have a buyer for 79,000. What approach would be best to stay legal and assure compensation. (state of Ohio)
I would do an assignment.
I used simple language something like, and title was fine with it.:
For good and valuable consideration, which is hereby acknowledged, Mpleaset assigns a certain real estate purchase and sales agreement dated xx/xx/xx and legal description in exhibit A, to assignee.
Both methods are legal. The only difference is that with an assignment (you are never actually have title to the property, nor appear on the chain of title).
Assignments are not selling property, but selling your interest in the property.
Assignments are easy to do, it is just find someone who is a real buyer, and not an assignor (Assignors are not Wholesalers). Whether you assign via contract, option, or land trust there is one closing transaction, with the end buyer if they choose to close. Otherwise you got a possible double assignment, which cuts into your profits.
The double close or double escrow (simultaneous close) can be used in some cases, and is legal but not looked kindly upon many title companies and attorneys who just refuse to do it. If you choose this route, be sure to find a competent attorney who has actually initiated double escrow. Many wholesalers do this with bulk REO packages all the time. Plus you will have to pay transfer tax as well, which can be quite expensive depending on the state you live in.[ Edited by omicron3000 on Date 08/19/2008 ]
what does the lender have to do w/ it? your not assigning the
mortgage.
you can also say assignable to an entity of equal or higher credit rating.
Thanks for your answers. I did resolve this one, but not with the bank or title company.
Thanks again
Mpleasant, how did you resolve this after all?
So, how was it resolved? Please share as we are all here to help each other.
Quote:
On 2008-08-22 09:02, mpleasant wrote:
Thanks for your answers. I did resolve this one, but not with the bank or title company.
Thanks again