Hey everyone,
With the banks overloaded with properties these days I was wondering
if it’s possible to do double closings with REOs?
It depends of the title company. Some title companies will do a double close some won’t you’ll have to ask the title companies in your area to see if they would.
This is your only option since you cant assing REO’s
Sure, as long as you have a buyer setup to purchase the property with cash you’ll be ok. You can also borrow the cash from a third party to cover your end of the deal for the first closing
Regarding double closings. I to would like to do that, and I certainly can as the local title company will allow it, however here is the problem that I am running into. If the end loan is a FHA, or conventional loan through Fannie or Freddie then you cant do that as they have specific rules against it. I know, because I’m mortgage banker.
The only way I can think of doing this would be to do a purchase option with a clause that either allows you to be quit claimed to title just before the final sale, or to allow you to place a deed of trust against a property for the profit / spread.
Of course you wont be able to do that with an REO property, so you would have to fund with some private cash and then sell all in the same day, however the buyers loan couldnt be an FHA, Fannie, Freddie loan.
I would love to hear other ways of doing this thing?