I was recently online and found some information on a new way to purchase short sales.
According to the information I found, Old School Title Company formulated the method and works just like assigning a property but you double-close, without any obligation to purchase, instead of assigning the property to soemone else to purchase and you can make more profit. Currently, I am in the process of testing this method but you all would really benefit from this knowledge.
Here is the information on the program....
"The answer is using the option contract for your short sales and double closing!
Option Contract w/ Addendum
Gives you the investor the right to market and list for sale on the MLS and enter into a P&S agreement as seller. You can also counter offer back and forth with lender w/o getting sellers signature every time.
Notice Of Option
This is most important! 5 days after signed and notarized you must record this notice at the local county court house. This gives the investor equitable interest to the property. This prevents " Title Seasoning" issues and no break in the chain of title. (May need to change heading to �memorandum of agreement�
With this contract, nationwide title company, and funding you can double close properties legally and safely and never use any of your own money. The Title Company is know for it's " Blast" program.
This is the national solution for all of your short sale and foreclosure transactions and this title company is the creator of the nationally renowned BLAST� transaction; Buy Low and Sell Today! The BLAST� transaction is the method by which investors can buy and sell properties at the same time safely and legally. It is a program that is sweeping the real estate investment community and is being taught by the top real estate lecturers and coaches in the country.
" A" sells to " B" and " B" sells to " C"
who is " A" (seller in distress)
who is " B" (Investor)
who is " C" (End Buyer)
FHA will not fund on deals that seller has not been recorded as legal owner for 3-6 months (HUD Anti Flip Guidelines); therefore your " end buyer" on the " B" to" C" transaction can't use FHA financing.
If your end buyer is using FHA you may consider using the land trust."
here is a link to the contracts that make it work:
Let me know what you think!