double closings and shortsale confusion

Foreclosures, Short Sales, Tax Foreclosures
1

I’m an wholesaler in IOWA.I’m interested in wholesaling REO’S and shortsales via a double closings. However lawyers in my area refuse to do dbl closings on either.I’m frustrated.They claim that the process is frauding the bank.I try to explain to them but to no avail.I need advice on how I can ease their concerns and make this happen or an alternative way to wholesaling the type of deals.Please help! :rolleyes

2

Hi,

The term "Double Closing" refers to an old term which meant "Taking your end buyers money C to close your A-B Purchase", unfortunately that term has carried over in certain states to mean a "simutanious closing"! Evidently in your state it still means or is used to define an old illegal transaction!

You are only buying A-B using transactional funding, closing and then closing to your end buyer B-C normally the next morning!

Methods:

  1. Assignment!

  2. Simutanious closing using transactional funding!!

These are the only 2 legal methods to buy, your buying and closing with your name on the HUD1 using transactional funding!!
Or your Assigning your contract!!!

         GR
3

Thanks for the insight.I think people in my state are thinking of the old way to do a dbl closing .I will do it the way that you advised me

4

Hi,

I am the buyer! I am closing in my name! I am owner on a HUD1! Period!!!!!!!!

Your second sale is nobody else’s business but your own, and the title company will need to know as they are preparing your second escrows documents and preparing for your sale as owner to your buyer!

Don’t announce your intentions unless you need to!!!

          GR
5

Clear Title America in Tampa specializes in double closings, short sales, etc. and they work nationwide.

6

Gold River - Please, are you saying that you can still do a double/Back to back closing even if there is a 30 or 90 day anti-flip restriction on the short sale acceptance letter? BofA makes you sign an addendum that states that you cannot resell the property within 30 days. Clearly, from your post, you will ignore the restriction and still resell before 30 days assuming you are wholesaling the deal…isn’t that right?

7

Hi,

No you either have to negotiate the removal of a 30 to 90 day restriction or buy only properties without restrictions!

You can not turn around and sell something next day that has a restriction tied to your original agreement!

            GR