Can anyonre give me the step by step process for simultaneous closings ?
It’s very simple once you find a Title Company (TC) that does them. Use a network of investors in the area of sale to get a TC name.
Then, submit both contracts to them: you as the buyer for the SS, and you as the Seller for your exit strategy. The TC handles everything else. I don’t submit a contract with me as the Seller until the bank has approved the SS.
I found that double closing are more to do with the lender’s guidelines than the title company. If the end buyer’s lender does not do the double closings, you won’t close…
I have found that most of all lenders will say that they do not do double closings. This is a problem if you do short sales. Besides 1)finding a cash buyer or 2)buying and holding the property for months and then proving to the lender the difference in your purchase price and the price you are selling…
I’m looking for other avenues to unload my negotiated short sales if the double closings has became a thing of the past. My title companyu is my owned by my attorney and she has no issues with double closings. The problem is with the lenders and getting them approved through underwriting.
HAS ANYONE DONE A DOUBLE CLOSING RECENTLY? With what lender and how did you present it to them?
I thought when doing a double closing that neither lender saw each other. Both lenders the SS side sees me as the buyer and the buyer’s lender see me as the seller. I thought I owned the property for a split second while the title company shuffled the papers
WaInvestor, you are correct. BTW, my double close was with a Wells Fargo SS.
Everywhere we ask now, says they don’t do double closings. I know they have been done before by my partner, but I have yet to do the double closing.
Besides a back2back close or cash buyer, what is the easiest way to flip your negotiated short sale to a rehabber/investor?
Of course if the discount is not great and you only stand to make $5k on a deal, you could do some sort of finder’s fee on the HUD… But if the equity is spread is larger and you can make $15k+, what do you do?
And for those that have done a short sale recently, what lender have you used to CLOSE ON YOUR BUYERS SIDE and how did you present the double closing scenario to them(without lying and committing fraud)?
Without the double closing, my exit strategy on the 10+ short sales I’m currently working on seems ruined…
Any comments on your double closing or alternate flip strategy would be greatly appreciated…
DJP, I didn’t tell Wells Fargo (WFC) my exit strategy b/c it was none of their business. As far as WFC was concerned, I was the buyer.
The Title Company I used did lots of double closings. They even helped when my buyer’s finance company didn’t understand at first how I could sell a property that they didn’t see my name on the title. All I know is that the Title Company worked it out & I got my Check! And WFC got their check! So everybody’s happy.
I think this goes to prove that having a good Title Company is invaluable. And I found the one I use via referrals from other investors in my local REI Club.
rgchamb- I understand that you did not tell the foreclosuring lender about your exit strategy, but what did you or your title company tell YOUR BUYER’S lender? And who is that lender?
I explain to the end buyer’s lending source that I am getting the property at a discount from the lender through a short sale b/c the borrower/homeowner was in default. Then I plan on turning around and selling the property to your end buyer. I will provide continuous chain of title and supply title insurance even though I will only hold the property for a few minutes… Most lenders come back and say they can’t do the double close anymore fo one reason or the other.
Could anyone inform me of a lender(for my buyer) that is still doing the double closing?
DJP: In my case, all I know is that my buyer’s lender had questions and my Title Company straightened it out. I don’t know all the details. All I know is that my Title Company did lots of double closings, so the escrow agent just knew how to deal with any lenders that were skeptical.
Anyone else do a double closing in the last couple of months?