House "near" foreclosure. Can I still wholesale (assign) it?

Question

Owners are far behind on mortgage payments and have already vacated the property. Foreclosure is near but has not officially been foreclosed on. What are my options? Would I still be able to lock this property under contract and assign it over to a cash buyer who would essentially take possession and take over past due payments?

Thanks!

Jeff B. · Answer

Not in Calif.  See Civil Code 1695

Susan Smith · Answer

Yes, you could lock this property under contract and assign it over to a cash buyer who would essentially take possession and take over past due payments. However, time is of the essence. Many judicial states require the courts approval to stop the foreclosure action. That means the foreclosing attorney can't just stop a foreclosure auction a day before the foreclosure sale.  The attorney has to wait for the courts and is subject to the courts calendar.   You will want to make sure your end buyer can close well before any foreclosure sale date.

Christopher Phillips · Answer

Most banks will not let you wholesale a shortsale. The owner of the property is underwater on the loan, so they won't be able to sell the house without the third party approval of their lender.

Jazz Wilson · Answer

@John Thedford obviously you don't know what a wholesaler is or does. Please remove yourself from my post with that negativity. It's soooo much easier to be positive. U could have kept your comment to yourself. Wish you the best

John Thedford · Answer

@Susan Smith

The OP wants to play middle man (unlicensed broker) and make a fee. See their posting title. They state they  want to "assign it to a cash buyer". In other words, they are NOT a  buyer. Of course most of these people are not "buyers" but must represent themselves as such to get a signed contract they can then try to sell.

Susan Smith · Answer

I  don't recall Jazz stating this is a short sale nor that he plans to represent himself as something other than who he is @john thedford.   This is a wholesale deal on a foreclosure, not a short sale.  The question Jazz asked is a foreclosure-related question about whether one can Assign a pre-foreclosure.  As a subject matter expert for a major lending institution and over 20 years in the industry properly executed "assignments" are not a problem.  An assignment is not a "sale" but rather a transfer of equitable interest.

John Thedford · Answer

@Natalie Kolodij

I believe they feel they have a sense of entitlement that they can broker real estate without a license and will do anything to make a buck. There are hundreds of posts on BP from scammers suggesting ways to get out of a contract. They even state they have no money and don't want to lose their deposit. I won't be a cheerleader for anyone that is harming sellers. Most of these people claim they are providing a "service" when in fact they are doing just the opposite. As I stated before: if it was indeed a "service" and was valued the states would license the practice. Smart little comments about earning a cookie are quite persuasive LOL! What else can a scammer say when called out.

Natalie Kolodij · Answer

@Jazz Wilson

For starters, I'll take that cookie on John's behalf. I could use a damn cookie right now.

There are a lot of people who share John's views- and many who disagree. John just happens to be really outspoken.

I think the issue is a lot of wholesalers don't really think about what they're doing as being unethical.

Are you operating with transparency? Are you telling a seller that YOU'RE going to buy their house...or are you literally saying I will be selling the right to buy your house to a third party?

The second big consideration is you sign the contract..you're sure you have an amazing deal....and then you don't. For whatever reason you got something wrong. And no cash buyer wants it. Will you hold to you work and buy that house you have a contract to buy? If not, you've just tied up someone's property from being able to be sold to someone else, and you're "back up plan" per a lot of the teachings is to have loop holes to breach the contract.

Just make sure you're being honest, up front, and imagine you're a stranger talking to your 100 year old grandma about buying her house. If your grandma was offered the deal you're offering someone...would you be mad or feel like she was cheated? If so, you're heart/deal is in the wrong place.

John Thedford · Answer

The question lingers: you represent yourself as a "buyer" and then don't buy it? That meets my definition of scammer.

Jazz Wilson · Answer

Congrats @John Thedford would you like a cookie? Many are scammers that's what you believe, i cant change that, I won't fight your ignorance. Everything you read on a screen isn't true. I know many successful wholesalers and they are successful because they do business right and their buyers continue to come back! You already have a negative mindset towards wholesalers, I wish there were better ones in your area, i bet there are but you won't give them a chance. I do business with the utmost integrity. Have a wonderful day!

House "near" foreclosure. Can I still wholesale (assign) it?

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