Contracts For Buying From Banks As Is
Does any body have any contracts for buying from banks that won't raise any flags. I want to buy from banks as is. I really want to assigned the contract but the assignments are to big do I will have to do double closings.
I think the only way a bank would want to sell you the property would be in it's as-is condition. No problem there.
The assignment could be a problem... depends upon the agreement you enter into with the Seller.
If you are purchasing directly from the Seller (no real estate broker) and the Seller is relying upon your contract... then insert an assignment clause.
If it's a Realtor contract... strike what doesn't sit well with you, and insert your own language.
Generally all you have to do to make it an assignable contract is add "or assigns" after your name. It's a pretty standard clause.
Every house I bought from a bank either
1) had to be submitted by REA
2) There Rep wrote up the contract and I signed
Lori
[addsig]
I don’t believe there are any REO deals without the involvement of a real estate agent, not anymore.
The realtors will generally use one of the “standard” contracts. There is no real standard, but there will be a dozen variations on a theme. It really doesn’t matter, because when the banks say as-is, they mean it.
Often the bank will send over it’s own contract anyway, and it will be a small novel indemnifying them from anything and everything, while you will have to swear on the lives of your children,and cross your heart and hope to die.
But that depends on the bank. I picked one up recently wherin the realtor used a Blumberg type contract from a stationary store. We were talking so much that he forgot to write in the address, and listed me as the seller and the bank as the buyer. The bank, a small secondary lender, signed without hesitation, and we worked out the confusion later.
Still, it’s doubtful that any bank will lend any credence to a contract which you create yourself, and assigning will be summarily dismissed.
Quinn
Why bother with assigning ? Make a separate aggreement with your buyer, then when you go to settlement (escrow) with the bank , use your buyers money to purchase the property, then transfer the deed to your buyer and collect the difference.
Dennis,
I am not clear on this type of transaction. It sounds like an assignment to me.
1. Do I have to pay for a transfer taxes as the wholesaler and own the property?
2. What is the separate document saying, so that the bank does not view this as a fraudulent practice. (Many banks in Baltimore do not like flipping or assigning contracts.)
3. Does the seller and buyer and bank know the difference in the fee given?
4. Where do I obtain/buy a copy of this type of contract?
In Jersey banks don't want to hear "and or assigns" in their contracts. They think you don't know what you're doing. Quite frankly many newbies will do that and then go fishing for someone to assign to, and it ties up the bank's time and the property if the deal doesn't fly. Dennis' idea does not address the mortgage. You can transfer the deed which gives him control and ownership of the property, but you sign the note for the mortgage and are still on the hook for that! Protect yourself! :-o
I did this with a shortsale deal I did with countrywide. However the seller's had to submit that they listed the house with he realtor which i provided for them. The contract wasn't a problem neither was the assignment fee on the buyer sided of the hud sheet for $15.000. But my problem with the property I am buying now is that I am buying the mortgage or the house from the bank. The bank was assigned the mortgage and it just left the property to collect taxes. I have a develepor friend who wants to buy it What woud the contract say that I would use established with my buyer if I use his money and then transfer the deed to him to insure he would be protected in the deal. Or should I just get the agreement draft with a lawyer and rock frrom there
Also this property is too caught up to assign to a realtor. I will probably go directly to whoever was assigned the mortgage so I am not worried about a realtor but I need a good contract in which I buy as is