What is involved in Buying a Condo Assignment?
First you need to be able to afford to pay the “original buyers” deposit money they have already given to the builder. That can be 10 to 25% of the original purchase price.
Second- you have to pay the difference between what you and the original buyer agree to as the new purchase price.
Thirdly – you have to be Mortgage Approved by the bank for the original purchase price.
Original Buyer Purchased Condo for $300,000 Paid 20% Deposit = $60,000
New Sale Price: $330,000 New Market Value $350,000
NEW Buyer Requires: 20% deposit – $60,000 and $30,000 for Difference Between Old and New Sale Price
Total Cash Required: $60K + $30K = $90,000
New Buyer must also be Mortgage Approved for $240,000 ($300,000 – $60,000 deposit)
A mortgage approval (commitment) is required not a pre-approval.