Re: Wholesale a Short Sale?
Posted by NJD on November 15, 2007 at 04:10:26:
In Reply to: Wholesale a Short Sale?
Posted by Cal Jammer on November 14, 2007 at 12:41:03:
Historically mainstream first mortgagee short sale approvals will stipulate the named Purchaser on the proffered contract of sale must be named as Purchaser on the final HUD1.
The named Purchaser in your deal(s) could be an LLC as long as you had your own proof of financing to complete the purchase. The contract would become an asset of the LLC. In theory, you could add another member to the LLC, and that member would close the deal. You would opt out of the LLC, the new member would have paid a buy-in fee.
Yes, the foreclosing lender may balk... but you may be successful arguing the LLC can't get financing in its own name and must rely on a member's credit. In that case, the mortgagee may permit a substitution of Purchaser if all other aspects of the contract remain the same.
Just be upfront, and don't surprise them at closing.
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