i was wondering if this is possible.

negotiate a preforeclosed or REO property using a hard money lender, close the deal, wholesale it to a rehabber for a slightly higher price and have this rehabber assume the existing loan with the hard money lender along with the grant deed?

yes, no or not creative enough?

intention is to wholsale the deal

example

$65k REO or preforeclosure
$140k comps
$91k HML (65% of ARV)
$10k down from rehabber into my pocket
Rehabber assumes the $91k hard money loan

That would be up to the Hard Money Lender.

I think most would look at that proposition as you making a deal with them... placing them into a small boat and pushing it out to sea... with no sail or paddle... or should that be no Sale??? excuse the semi pun

It's true, depending upon the lender this can be done. Out of good faith it should be disclosed and your fees are shown on the HUD. If not and the lender finds out, they can call the loan due immediately. Also, you should make sure that your investor is committed before you proceed or else you're stuck with the property and scrambling.