Wholesaling a Shortsale or Reo by selling your LLC

[Kerry R.]

Hello Everyone,

I have a question about wholesaling short sales and REO's. I started making my offers by forming LLC's with the intention of assigning/selling the LLC to the end buyer seeing that the banks do not allow assignments. I have been successful in doing this once so far. Recently I had a situation where the HML for the end buyer would not allow the buyer to take title in the LLC therefore I had to do an assignment. This was not a problem because this deal was with the homeowner and not the bank and even though the agent griped we were able to do the assignment because it was already written in the contract and they had signed and agreed to it.

I have another deal and unfortunately for me the end buyer is using the same HML but this time this is a short sale. I have the same clause in the addendum stating that the contract is assignable and they signed and agreed and the approval from the bank did not address non-assignments. I am concerned because I have been told that the bank won't allow it even if the contract is signed. I am also concerned about selling the LLC and the bank will not take title in the LLC. Is there a way around this? Should I alert the agent that there will be an assignment or just continue to move forward without saying anything seeing that all parties have signed allowing this (keeping in mind that it was the original homeowner that signed but the bank did not disagree)? Or do I have to entertain a double close at this point and give up some money to a company luke coastal-dunding? And if so how will this be done?

I would really appreciate anyones input before I do something wrong and screw this thing up.

Thanks in advance for your response.

Kerry