Has Anyone Done A Reverse Assignment? - Posted by IB (NJ)

Posted by Jason on February 05, 2008 at 20:53:37:

This is kinda what I was getting at, even though I
don’t own Joe’s course.

The way I described does the same thing as your typical
wholesale deal, but without the seasoning concerns.

Like I said, either way accomplishes the same thing…getting paid (as a principle).

Has Anyone Done A Reverse Assignment? - Posted by IB (NJ)

Posted by IB (NJ) on February 05, 2008 at 08:35:39:

A â??reverse assignmentâ?? just fell into my lap. Has anyone ever done one of these? Basically, a woman in preforeclosure wants to sell at a discount, but not low enough for me to purchase and flip the property wholesale to a cash buyer. So I was thinking of selling retail at a discount.

My plan (and this is a first for me as I usually flip wholesale) is to put the seller under contract, bring in a retail buyer (who will be using a conventional mortgage) and cancel the contract between the buyer and I in exchange for a â??cancellation feeâ?? to be paid at closing. The buyer will then get under contract directly with the seller. I will secure the fee in the form of a performance mortgage against the property. My mortgage people will be used to make sure the deal closes and I stay in the loop.

Has anyone done this? Your experience?

Ib

Re: Has Anyone Done A Reverse Assignment? - Posted by William Bronchick

Posted by William Bronchick on February 05, 2008 at 11:36:16:

The reverse assignment should only be used as a last resort if your end buyer’s lender has a seasoning issue. The seasoning issue does not come up as often as you might think.

Re: Has Anyone Done A Reverse Assignment? - Posted by BTI

Posted by BTI on February 05, 2008 at 10:25:20:

IB

I’m not familiar with NJ laws but in some states you are trending on certain foreclosure laws and could get into trouble, so review yours.

Even though this seems like a simple question a complete course could be written on the subject. One thing I would like to suggest is never use the term cancellation fee, always indicate they are purchasing your existing rights.

I would never do this kind of deal where the property is in foreclosure in many states without being able to cure the loans and take subject to, or you may be the recipient of a summons from an unhappy former owner who needs to blame someone if it proceeds to a full foreclosure.

BTI

Re: Has Anyone Done A Reverse Assignment? - Posted by Jason

Posted by Jason on February 05, 2008 at 14:55:59:

But one could carve out a nice niche
using this method, yes?

Re: Has Anyone Done A Reverse Assignment? - Posted by William Bronchick

Posted by William Bronchick on February 05, 2008 at 15:02:58:

I would not carve a niche out of this - it would look like you are brokering.

Re: Has Anyone Done A Reverse Assignment? - Posted by Jason

Posted by Jason on February 05, 2008 at 15:12:23:

How would it be different than assigning a
contract?
You’re still a principle in the agreement, yes?
I know the schematics are different in regards
to getting paid, but the goal is the same.

…not trying to question you, of all people, but
just thinking out loud. :smiley:

Re: Has Anyone Done A Reverse Assignment? - Posted by William Bronchick

Posted by William Bronchick on February 05, 2008 at 15:14:10:

It’s different because you are getting paid by the SELLER instead of the buyer, so it’s looks like a listing agreement. I wouldn’t make a business out of it, but on the ocassional chance that your buyer’s lender has a seasonal issue, the reverse assignment will work. If it looks pre-planned, it looks like you are acting as a broker.

Re: Has Anyone Done A Reverse Assignment? - Posted by IB (NJ)

Posted by IB (NJ) on February 05, 2008 at 16:12:11:

Joe Kaiser has something in his BPF course that I think may resolve this concern (Brokering). I don’t want to give too much away here but it involves working with agents. I’m wondering if you’ve had a chance to review his course.

Ib