If I buy a property through bank loan 15 years monthly amortization then I want to wholesale the property to a buyer.
What are the things I need to process?
Should I pay the bank the whole price for me to get the title and transfer the title to the wholesale buyer?
Eden says:
First, get to know the rules of the bank.
Every bank has its own personality. Each one has its own requirements.
Assuming you have already passed the stringent loan requirements (or automatically qualify for the loan in case of winning auctions), you may ask the bank the following:
1. Can I assign the property to another person? Some banks doesn't allow this and will require double transfer - meaning, you have to pay for the taxes first before the title is transferred to the buyer. If so, what is the process of assigning the property? Another trick is putting your name AND AN ASSIGNEE during the contract signing. Again, some banks doesn't allow this.
2. In case your buyer wants to pay cash. Ask the bank, what are the expenses/charges that I have to pay in pre-terminating a loan?
3. In case the bank allows transfers, what do I have to pay for the transfer?
LESSON: Never be afraid to ask questions to the bank. It is their job to keep you informed. You'd also be surprised how helpful they are :-)
