Assignment Clause: Purchase Agreement Assignment Fee

Ron wrote an article about the minnesota short sale process

This article was written by Mario about assignments for investing in real estate…

Mario is an agent who specializes in mn short sales

Your assignment shouldnt be an issue depending on how you word it with the lender. All you do is get the original offer accepted with the seller’s bank. after that is done, assign the contract to a new buyer and
that agreement is between you and the new buyer. That is not part of closing. MAKE the buyer pay you his fee up front. that is where things get messed up, if you are trying to get paid your assignment fee out of closing. Only deal with people who can actualy afford to do the deal, it will save you headaches in the end. Once again, have them pay you the
assignment fee and then contact the seller’s lender and tell them that you needed to change the name of the borrower because that buyer will not be able to perform. Dont lie and say their financing fell through or
anything like that because you always want to be honest. make it seem as though you are doing them a favor by finding a new buyer for them really fast with the Same terms, same close date, same net, just different borrower. Bet you $100 that they say “oh… ok”. have them send over the new acceptance letter. Be ready for the lender to request a new preapproval letter for the new borrower. Obviously the last guy didnt come through so they want to make sure the new guy can actually perform. These mitigators are used to buyers financing falling through and they are thankful that they dont need to get an entirely new package approved from management because they have a million other deals they are working on. they may request a copy of the purchase agreement with the new borrowers name on it but that takes all of 2 mins to throw the new one on there.

As for land trusts… we use the regularly and when it comes to short sales, they need to be used a little differently. In a normal transaction most people have the sellers deed the house into the trust and leave them as beneficiaries until the day of close (to avoid due on sale claus and just to know that they are not hiding anything from their lender) and the day of closing will have the seller assign their beneficiary interests over to the buyer. at that time the 1st buyer goes to closing table and sells it to end buyer. with short sales, it is a little different because you are dealing with the sellers lender and then you need to remember that the seller can not recieve any proceeds. so in that case the house needs to stay in seller name until closing and then seller sells to trust, that you are the beneficiary of and then the trust sells it to end buyer. if the seller is ever beneficiary of the trust in a short sale, it will cause problems with the sellers lender because THE SELLER CANT GET ANY PROCEEDS.

If you just want to use the trust to assign the deal then someone before me was right. Get a purchase agreement accepted from the sellers lender with the trust being the buyer. You are the beneficiary of the trust. Then you go get an assignment contract to assign beneficiary interest in the trust not to assign the purchase agreement. Most likely you will keep yourself or a nuetral person as the trustee to keep things simple so at closing you or an attorney or neutral person still will sign for the trust. if you change trustee then you will need to do more paperwork and it is somewhat un-neccessary (cant spell).

Please make sure that you consult with your attorney about the simo close and land trusts. Laws in my state are different then yours and to make sure we are always doing things within the law, we do the closingswith an attorneys office instead of a normal title company. that way we know that we are doing things the right way. Hope that stuff helps cuz my fingers are sore!

Thanks Mario for the great article, we have his future articles in the “Mario” category

BookMark, Email, or Subscribe This Page, Tell Friends!

Tags: assignment clause, assignment fee, assignment of purchase agreement, mario, purchase agreement assignment fee

Link to this Article(Ctrl+C to copy)
Assignment Clause: Purchase Agreement Assignment Fee

<a href="http://www.minnesotainvestors.com/blog/assignment-clause-purchase-agreement-assignment-fee/">Assignment Clause: Purchase Agreement Assignment Fee</a>

RonOrr.com Time Leverage Time is Money

Responses are currently closed, but you can trackback from your own site.