Collecting Assignment Fee On Closing Statement
An investor friend and i were talking about how to collect the assignment fee at closing.
The flaw wtih collecting the fee upfront from the homebuyer is that many of them have limited cash resources, and cannod afford to both pay a $5,000 upfront assignment fee plus come up with a down payment as required by their lender.
So clearly to solve that problem, it would be best to collect the fee at closing.
If possible I would like responses from anyone who has actually gotten paid their assignment fee right on the closing statement.
1) Has anyone closed deals where the buyers lender knew that the contract was being assigned, and did not have a problem with it.?
2) Did the lender allow you to collect your fee on the closing statement ?
My investor friend and I are thinking of getting the seller to agree to let us put a lien on his property, so that we get paid from the loan proceeds at closing.
But, we want to make sure this will be acceptable to lenders and title companies.
(by the way my investor friend is also a contractor)
Hello
Yes, you should collect your fee at closing. I have never really had a problem with a bank for having an assignment fee on the closing hud. If you think it is a problem then state it as a consulting fee or just list your name under commissions for a finders fee. The most trouble I have had is someone saying it was too high but (which it wasnt) but some people dont want to see you get anything. Your best bet is to not give them any of your owners information and you be the only contact to get the deal closed.
Oh, now if it is a buyer who is going to live in the property it may be different. I have been told by an attorney that banks usually dont care unless it is going to be owner occuppied. It may be different where you are. Your best bet is to ask a lender that is friendly to you how to handle your deal. Most people are not going to have it up front or they are not gonna feel comfortable giving it all up front before the deal actually closes. The hud statement is the best way.