Double close

I called 2 title companies today that I was referred to by local members of the RICH club. I have 3 short sales that I am working and wanted to open title. The first advised me that she could not do a double closing on a short sale. She had to put it on the HUD-1 and advise the mortgage company of the double close. Went to the second title company that does double closing but he said he would have to open 2 files, have title policies for both closings and could only do it if it was a hard money lender or cash. If it was a regular lender, BofA, Chase, etc., they would not approve a loan for a short sale.
What am I missing? What do I do? I was so excited thinking I am finally getting this. :cry:

Keep looking for another title company that will cooperate. I assume the RICH club is a real estate investment group. Ask more members, get more title contact names, drop names if you have to. An investor-friendly title company may sometimes be hard to find but they are certainly out there. We dry-close on our first closing, then it is funded by the second closing. Happens all the time. Keep digging.

I am in the process of doing my first short sale and is set to close next month. I spoke with a few mortgage companies who’ll finance my end buyer. They said when they find a lender for my buyer the lender is going to check title and see that I am not on title and not fund my new buyer and it won’t get closed. Have you heard of this and if so, how did you get around this issue?

Yes, it is called title seasoning. Depending on the type of loan/risk for the end buyer, the lender may require 6, 12 or 24 months of title seasoning. One way to deal with it is to assign your contract to your buyer and have the buyer pay you the assginment fee (your profit) outside of closing. However, if you are working with a retail buyer, they typically don’t have this type of cash to give you. It will be hard to include your assignment fee in the contract because most lenders don’t allow for that. Another way to handle it is to put the deed into a land trust that you control. Moving the deed into a land trust generally is not considered ownership transfer, thus your title seasoning is not broken. Check with an attorney if you are not familiar with this.

Thanks for the response. I am familiar with land trust and I figured that would be the solution, however…do I put the property in the land trust now before my end buyer tries to get a loan? When is the new buyer’s lender going to check title…immediately?

My confusion is if I wait until closing to put the property in a land trust it’ll be to late…my buyer would have already tried to get a loan and would probably be denied by then.

Title is ordered at or around the time the loan gets underwriting approval from the buyer’s lender. You should have the land trust in place by then.

I would ask the buyer to get pre-approved, then get permission to talk to the loan officer and ask him directly whether the lender will allow a land trust.

what state are you in as i may know of someone who might be able to fund your buyer and the deal with less or no trouble message me

I am in (Southwest) Houston, Texas

You will have to find a mortgage broker that is familiar with double closing. Here in my area there are a few that will do a double closing. They don’t require any seasoning. Where you will run into seasoning problems is with credit challenge buyers or buyers that require fha loans.

I’m doing my 1st short-sale deal & it will have a double close. My buyer is from out of state. That Title Company I’m using does double closes all the time.

Try to get your buyer use your Title Company when you do the double close, that way you don’t have to pay for Title twice.

What is double closing? I believe I know the answer, but would rather hear it from an expert.


The buyer A buys from the seller at 1:00 PM and then sell the property to buyer B at 1:30 PM for a slightly higher price.

There are some economies in doing this…buyer A only holds the property for 1/2 an hour or so.