Quote:
Originally Posted by Tron_fdc
Can you sell your contract and deposit to some money bags for 15 grand, and they could assume the mortgage? I wonder if there's some kind of clause in the contract preventing that?
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That's a nomination and for a bit there it was quite common to do with new places, buy a place and put "Joe Buyer or nominee" on the contract. Turn around and sell the contract the next day for a few quick bucks.
It was common enough that sellers started putting clauses in their contract to prevent it.
Which seems silly.. if you are jealous of the profit the guy is getting, raise your prices
Anyway, for a while doing that was almost impossible, first they put wording in the contract to prevent it, and eventually they even had a separate agreement to sign. Companies and lenders were going to lengths to enforce it, I even heard stories of banks sending someone out to visit a few months into possession to see if the person had actually moved in.
I think now though builders have relaxed that.