Is it true that you cannot assign a short sale deal? if this is the case what other exit strategies would you recommend? Double Closing?
If you assigned it I imagine the assignee would have to start the SS process with the bank allover again. If you have any rapport with a loss mitigation person ask them how you could do it. If you have a title company or escrow that will do them this is a good way to go. Make sure they know what they are doing.
You can not assign short sales.
You can do a double closing, though, using flash funding (Google “flash funding” or “transactional funding” ) as long as you have an end buyer lined up. You will have to pay fees on the money, though, so you will have to build those costs into your deal.
I was wondering about transactional funding with reo/short sale properties as it seems that the bank is usually insistent on using their own escrow company. With transactional funding it seems they usually want you to use a specific escrow company in order for the back to back closing to go smoothly. Is this right?
Has anyone encountered any problems with this?
Most banks make you use their title company to do the title work, but you can do the actual closing wherever you want to. I just have them send everything over to my title company when it is ready to close, and we do the closing there (I do simultaneous closings). My title company then wires the funds and FedExes the docs back to the other title co.
Interesting, are banks usually ok with accepting the ‘proof of funds’ letter from the transactional funding company to make offers? Or do they ask for more proof of funds as well? do your end buyers usually use conventional , hard money or cash?
I never heard this, however some do their own due diligence if that’s what you mean.
Investorman- I use a statement from a line of credit to submit with my offers.
My end buyers are almost all cash.
CharlottePlayer- Not sure what you mean. 99% of the banks will require you to use their title company to do the lien searches and prepare all of the closing docs. I haven’t found a way to get around this.
Step, would you mind stating how you got the line of credit? Is it a personal line of credit or business?
I’m feeling there is a stigma attached to hard money .
It’s not mine- it’s my Dad’s.
If they say anything about it (which they rarely do), I tell them it is my partner’s. Which is mostly true.