Foreclosure University

Your Online Real Estate Investing Resource

Double Closings

Closing short sales and finding a buyer

by 2 Comments

Question: When closing short sales and finding a buyer in 30 days or less, are you using a land trust to avoid the seasoning issues or are you double closing in your own name? How do you avoid the seasoning issues?

Answer: -It’s becoming harder and harder to perform a double or simultaneous closing because of all the mortgage fraud going on in the lending industry. However, there are a few title companies still around in certain states that will do this for you, you just have to find them. The land trust is used to provide added protection and helps in avoiding the due on sale clause. So using a land trust is beneficial even if you can’t perform a double closing. The most common seasoning issues come when you buy a piece of real estate for $100,000 one week and sell it for $200,000 the next. They begin to wonder how it doubled in price so quickly and you or your end buyer may have to explain that you got a good deal.

can a short sale deal be assigned, double closed, simultaneous closing?

by 2 Comments

I am learning a lot about short sales from 2 books that I bought and reading from lots of online short sale message boards/discussion groups. If I were able to successfully negotiate a short sale deal with the lender/loss mitigation and if the homeowner signed a purchase agreement with me, would I be allowed or would it be legal for me to sell my position to another real estate investor since I don’t have the funds/credit to purchase & rehab the house.

I guess I am asking can I wholesale a short sale deal OR can I assign it OR can I do a double or simultaneous closing. It occurred to me that this might work since my mentor has given me permission to tell people that we are business partners. Thanks in advance for your help.

 

Answer:

You actually have several questions here so let me address them one at a time.

No. You can’t assign a short sale. They will not approve it if the agreement reads AND/OR ASSIGNS.

Yes, You can perform a double or simultaneous closing. Happens all the time. However, you need proof of funds to do it. We offer no fee, transactional funding which will facilitate the A-B transaction between you and the bank. Then B-C, you and the end buyer. It’s works seamlessly.

Almost all states will allow you to do this, you just need to find the right title company. That is why you need to have a relationship with your title company so they can help you. Sometimes you have to follow their guidelines or rules in order to do a simultaneous or double closing. It is not a hard process at all, if your title company is willing to work with you.

Most of these questions that you have are explained in our short sale course. I’m sure you’ve seen it on the website. https://www.foreclosureuniversity.com/products

It’s step by step everything you need to do this successfully. It will be one of the best investments you ever make if you are serious about doing this.