I am Licenced in Virginia and Maryland. Mostly my business is in Virginia. I have seen few listings in the MLS lately where they say ( this transaction is a contract assignmnet, cash only and seller is related to the agent). Where are they buying these house or assignmnets?. Foreclosuer or trustee sale or what. Does any one know?
You need to be a member of REO Pro Network to add comments!
Contract assignment is when an "investor" or "negotiator" go to someone who might be loosing their home and offer lets say $200,000 to buy the house, the seller agrees and they enter into contract for the price and usually they start to negotiate with the bank to do a short sale, then they try to sell the house on the MLS or craigslist etc. for $250,000 and get a buyer for that much, they assign the original contract to the new buyer, they never take ownership of the property and they made $50,000, I might be exagerating a little but that is the concept.
Usually there are bird doggers who work the assignment with FSBOs or people who are late in their mortgage, they get the list from public records, lead companies, etc. send them letters, usually hand written in yellow paper. I had to do some bpos for the short sale bank and the houses sometimes were never listed on MLS or even have "for sale" signs. one time the agent's assitant met me at one of the houses and told me a crazy story, that the house was vacant, but the stove was warm, and the couple were divorced and now a lawyer was in charge of the house, and that he worked for a group of millionaire investors who purchase property at 50 cents on the dollar and then flip them without listing them, because they had a pool of first time buyers ready. He told me they were trying to get a bpo for $100,000 in the house and that they had a buyer ready for $160,000.
Unfortunately the right price for the house was $220,000 and that was my bpo. He also gave me a list of comps for me to use and they were all smaller in a different neighborhood and in bad condition, that house was larger in good condition in a good school district.
I don't think assignments are illegal, but be careful, I am sure there is a right way to do it, but if it smells like crap and looks like crap then it is crap.
ZUBARIA LATIF > Jose Rivas (DGRA) CDPE, SFRAugust 24, 2010 at 5:02pm
Thank you so much.the other thing I have just came to know is that they buy from trustee sale and pay a 10percent deposit and then find the buyer in 15days cash only and pay$500 to the trustee to change the name of the buyer. That is a great way to make money in a short while.
Replies
Usually there are bird doggers who work the assignment with FSBOs or people who are late in their mortgage, they get the list from public records, lead companies, etc. send them letters, usually hand written in yellow paper. I had to do some bpos for the short sale bank and the houses sometimes were never listed on MLS or even have "for sale" signs. one time the agent's assitant met me at one of the houses and told me a crazy story, that the house was vacant, but the stove was warm, and the couple were divorced and now a lawyer was in charge of the house, and that he worked for a group of millionaire investors who purchase property at 50 cents on the dollar and then flip them without listing them, because they had a pool of first time buyers ready. He told me they were trying to get a bpo for $100,000 in the house and that they had a buyer ready for $160,000.
Unfortunately the right price for the house was $220,000 and that was my bpo. He also gave me a list of comps for me to use and they were all smaller in a different neighborhood and in bad condition, that house was larger in good condition in a good school district.
I don't think assignments are illegal, but be careful, I am sure there is a right way to do it, but if it smells like crap and looks like crap then it is crap.