Wholesaling A Short Sale In Nj
Just wondering if anyone has any experience with doing short sales and then wholesaling the property. New Jersey if you dont already know has had some very shady real estate deals in the past that sent alot of people to jail or just out of business. So the title companies I have spoke with dont want to have anything to do with double closings or simultaneous closings. I have heard about using an option contract and have also had advice about using a land trust since the lenders dont want to see assignments. Any advice? Thanks in advance.
Land trust is the way to go - avoids the mortgage fraud issue etc. The crux of the transaction is the transfer of the ownership of the trust itself. This is the basis for your short sale transaction.
use an option, just make sure that the seller is wiling to work with you and put your fee in writing.
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Try your local REIA club, the members there should be able to point you in the right direction when it comes to title companies that do what you want.
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Scott Costello
my blog: ADVERTISING[ Edited by JohnLocke on Date 06/02/2009 ]
Why not just take and record title immediatley?
Whoever does the MLS flat fee should be able to tell you if this is in line with their local MLS rules or not. In my area, you have to be the owner of record or Authorized Agent before you can list the property on the MLS.
I would assume its the same in your area but your MLS Flat Fee company should be able to verify that for you. Just so you know, the only time there would be a problem is if somebody complained to the MLS. So if you are okay with the Homeowner and have his or her permission, then you should be fine.
JS.
As a general rule, you need to be the Owner of record. Why would the Seller allow you to list it when he could list it himself?
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"A deal is only as good as the quality of your Contracts." --Me[ Edited by LeaseOptionKing on Date 01/03/2009 ]
My guess is that unless you have power of attorney the MLS service would not allow it.
LeaseOptionKing:
Is the option is transferable, how can the owner stop you from selling/listing it?
Has to be the owner(s) of record here. Everybody on the deed.
Jim
There is no assignment. There is one contract between me and him saying is bringing the buyer and seller together. It is not a real estate sales contract. It is called an addendum to my contract with buyer. There is another contract between me and buyer.
When I say there in another contract between me and hm I mean not to sell the real estate to him but to rehabilitate and put the the buyer and seller together. There is not real estate sale contract between him and me where he is then assigning it to the buyer.
DougON, three or so years ago I would see this kind of thing all the time. There are people out there who are unconsciously incompetent individuals who unknowingly set themselves up for disappointment.
A visit to a local Real Estate attorney...specially one versed in foreclosures or creative deals... would seem to be in order for you to do NOW.
He/she will aim you in the right direction. And in the future....consult with your attorney BEFORE you sign contracts, OK?
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