Home Buying in 01845>Question Details

Mike,  in 01845

if you buy wrights to a bank owned for 5000 can you go and sell wrights for more money such as 10000 or 15000.to some one else.say because i dont

Asked by Mike, 01845 Sun Sep 4, 2011

want to buy it.but i put 5000 of improvements in.

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The contract you have with the owner if any should spell out your rights. You need to have an attorney review any documents you have and advise you on how you can proceed. Assignments and or 2nd deals can be common in some types of purchases but often bank owned/REO property and especially government owned properties have restrictions on profits from a sale of their properties within a certain period, otherwise a future buyer may have issues with their finacing. Why would their financing want to pay 2x the costs of your improvements? This is why you'll need to have an attorney review your options with you.

Hope that helps,
0 votes Thank Flag Link Mon Sep 5, 2011
I don't think the question was worded correctly. I bank would not sell the "rights" to a property that they foreclosed on. They only sell properties outright. Maybe you put $5,000 down on a bank owned property as a deposit, made some improvements before closing to meet financing requirements (that I have seen before), and now have changed your mind about proceeding with the sale? If that is the case, usually the addendum and/or P&S you signed has something in it about assigning the "rights" to someone else. Many times the banks put a clause in that prohibits that.

In any case, get yourself a good real estate & contract attorney. Good luck.

Jim
0 votes Thank Flag Link Mon Sep 5, 2011
If someone sold you the "rights" I suppose you can do the same.
As previously mentioned I would also consult with an attorney.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Sep 5, 2011
Hi Mikee,

Did you buy the home or just the 'right to buy' the home? If you actually purchased the home and put improvements in, then asolutely you can sell it for a profit. This is perfectly legitimate and legal. I am trying to understand how you could have only purchased the ;'right to buy' a bank owned home and put improvements in to a property you did not actually own. I cannot imagine anyone recommending you do such a thing, however, depending on how you structured your 'right to buy' agreement, you may still be able to sell those rights for a profit. I would suggest you talk to an attorney in that case as these options to buy can get tricky.
0 votes Thank Flag Link Mon Sep 5, 2011
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