I’ve been doing short sales for a year and a half now. The methods I am using are causing me problems and causing me to lose the deals.
Apparently, Aurora Loan Services doesn’t like the idea I’m going to make a fee for “flipping” this house.
I am thinking of just getting licensed again to make sure i get my commission and make a profit as an investor.
My biggest question is getting PAID… How is everyone securing your fee in the deal. I tried doing an assignment and the lender doesn’t want me to net out any money. In the SS agreement the spelled out that “any overages go to lender” what the “F”? "Cuse my language, I"m just every pissed right now.
THE MILLION DOLLAR QUESTION… HOW DO I GET PAID ???
If I understand correctly you would need to do an A_b_C transaction, meaning you would close with the bank in the am and then turn around and close with your end buyer in the pm. You could use transaction funding to close your deal with the bank. That way the bank has no idea what your intentions are as far as making a profit as far as their concerned you are the buyer.
I believe this will not work with FHA due to title seasoning issues.
Kasmand is correct, and there is no way to get around the 90 FHA seasoning if that's your buyers finance decision.
Try to find a local conventional lender who will make loans without seasoning and then refer your end buyers to them. This way you can make your deal work.
Shouldn’t one be able to get around the FHA 90-day seasoning issue by putting the property in a Title Holding Trust? Once the title has been in the trust for 90 days, the beneficial interest gets conveyed from the borrower (previous title holder) to the investor’s entity, then the Trust conveys the deed to the new borrower.
Seems to me that this would be the same if a couple owned a property, then created an inter vivos trust. When one of the spouses dies, so the sole beneficiary controls the remainder trust, and that person should be able to sell their house FHA right away. They shouldn’t have any seasoning issues. Even if the beneficial interests passed to an heir, the title would be still be held in the name of the trust, until a Trustee’s Deed conveyed to a new purchaser.
This is not a rhetorical question. I really do want to know if FHA has any problems with this, but I suppose I should ask FHA? :bobble
Can we do short sale on the same day if we do a-b-c transaction? That way we don’t need extra money to close the deal with bank first. Any light on this would be helpful. Also if possible what practices are mostly done and fruitful in Santa Cruz California for short sale.
Some banks are now requiring that the 1st closing is recorded before the 2nd closing can take place. In this case if you have a title company that will ensure that the deed is recorded on the same day of the first closing you should be fine.
The big question is, will the title company rush out to the court to record the deed for you?
torojd - What kind of contract are you using? We have done many closings with Aurora with no problems and we are disclosing that we are reselling the property for profit. Are you actually telling them you are “flipping” the property? The word flipping is a “bad” word these days as it really goes back to the days of doing dry closings (using the end buyers money to close the first transaction) which is no longer done!
melrealtor - The title company will charge you an extra fee to run it to the court house. Usually after the first cloing is done, one closer will go to the court house and all they do is call in the recording number to the other closer at the office and then the second closing can proceed.