by Steve Cook
When I first started investing, contracts to purchase REO properties from banks were still assignable. Whenever I wholesaled a property, I signed a simple, one-page Assignment of Contract with my buyer which assigned my buying position in my contract with a bank to my buyer. Effectively, my buyer (the assignee) stepped into my shoes and closed the deal.
As more and more banks were burned by assignees who bought positions in their sales contracts but did not perform, they decided it was time to start to control the selling process and force the original buyer on a contract to purchase the property. Thus, they started inserting a ,Non-assignability Clause, in their contracts, which goes something like this: