Assigning A SS Contract?
I have an acceptance letter of a offer on a property I did a SS on. My question is can I now just assign this SS to another person? Will/Do the banks allow this?
Thanks
I have an acceptance letter of a offer on a property I did a SS on. My question is can I now just assign this SS to another person? Will/Do the banks allow this?
Thanks
the ss approval letter usually has all of the conditions you must meet in order to close. usually one of the conditions is that it is not assignable. thats why you
should create an LLC that way members can be added or taken out from the equation w/o having to get further approval from the bank to assign.
you can go to the extreme of having an LLC per transaction or a holding LLC that funds the the transaction LLC
How would I do that? I have a corporation, the bank assumes it is going to be under my name, personal residence.
you can buy it personally and then assign it to whomever you want.
If you're not buying in the corp name and investment property, but rather primary residence, then the corp doesn't seem like an option.
Why not buy in the name of the corp?
This is an investment. I did not send the bank a contract with my company's name on it because I have heard that if it is an individual buying you have a better chance of getting them to accept the offer.
I could be wrong but that is just what I have heard and this is my first SS.
Well done on getting the SS accepted.
Given the deal is already accepted you might not have much room to assign. The logic behind no assignments is they do not want the deal to fall apart now that they have accepted you.
It could be possible to do a simultaneous close or otherwise sell on. It will likely mean some extra fees.
If you want, PM me with the deal details and I can come up with some possible solutions.
John
[addsig]
Laying the proper foundation is key to implementing an exit strategy.... changing horses in midstream may work in the movies... or at 'bootcamps' but not in the real world.
[addsig]
I thought that may happen. Oh well it was just a question.
I have no problem closing on it I just wanted to know if I could do an assignment. We all learn from our mistakes, fortunately it is not a devestating mistake.
Thank you all for your words of wisdom.
SSP,
How could s/he have done this -- get the prop in the name of an LLC? I'm meeting w/an owner tonight to obtain the authorization letter. I want the prop in corporate name (I can close in personal name).