Hello !!! I have a short sale approved and I have several offers on the table but I’m worried that the seller might be going around my back selling to someone else. Possibily for a fee. I have a signed Purchase and sale agreement and the short sale approval from the bank… I have done way to much work to get this close and lose it. Is there a way to lock this up by recording the contract. One of the transactional funding companies gave me ways to do this with an option contract but I used a standard Purchase and sale agreement. Does anyone know the law on how much can be given to as short sale seller.
Thanks for the the reply. The problem is that it’s too late for that. The bank wants to close in 17 days. They will not postpone auction another time. I’ve got a buyer who can close but I’m worried they will try to sell behind my back.I’ve disclosed that I might sell to another party. I’m allowing them to rent there unit. Does the seller have to know that It’s going to be resold at closing. I hate to be tricky but I dont trust them right now. Thanks
I usually get my sales contract, option contract or whatever contract I use with the seller notarized and recorded. That way I cloud the property disabling the homeowners from circumventing me out of the deal.
2nd, this is a short sale. If the homeowner sells the property for more then the approval, the homeowners still walk away with nothing.
3rd, look at your approval letter. For all you know it says that you are the only buyer that can buy the property.
Thanks !!! Not sure if I have that kind of time. Was just informed by Home Eq that the closing has to be 11/27. Said they will not extend again. I’ve got a strong buyer that said he can close by the 27th. The question is will his lender allow a back to back.I need to nip it in the bud upfront because I will be funding this myself , If he has to back out. Any advice on how to find out if his lenders atty or title company has an issue with back to back. Or do I even need to bring it up if we decide to put it in a trust to avoid seasoning. Thanks.
Thanks Again. it’s very nerve racking. My close is on the 25th. Auction is on the 2nd. My buyer is working hard to get his stuff done. I Just got the short sale approval letter on Thursaday and they are forcing me to close in less than two weeks. My worry is that my seller will pull something. They’ve been great but something scares me. My buyer will be renting to them as well. Hopefully there is nothing they can do to sell from under me with about a week to go or they decide to go bankrupt.
If the end buyer is getting a conventional loan then you shouldn’t have a problem, but if they are getting an FHA loan there may be some questions raised.
Thanks !!! I was going to use trans funding. so much bad info out there on whether you need it for double closings or back to back to back . Every other attny has a diff opinion here in ma. One even told me that no lawyer will touch this transaction.
I’m trying to avoid the seller backing out and selling to someone else or asking to much at closing. My buyer will be renting to him. I could of sold this to a retail buyer at full price if I had more time or was able to kick out the sellers . But they want to stay. I’m wondering how soon , I can get the lender to send over the closing docs. Seller might stall on signing approval letter and agreeing to lease from my buyer.
Who knows if it is legal to notify seller/owner of the property will be double closed. He knows I was showing it and it was written in the P/S. Maybe I’m just too paranoid. I know he will be trying to squeeze me for cash after close.
I think for your next transaction you should just let the seller know what your intentions are. Let’s face it, you are an investor and there loss is your gain. you are there to make money. Now you don’t want to explain it in that fashion, but I believe if you explain the process and put your option contract together and have provisions that you have buyers that may potentially can buy and it will be for a profit.
Record it so they can’t go around you, but to explain due to the fact that this is a short sale, you will not walk away with any proceeds. On the other hand if seller is very insistant on getting some funds, I’m sure there is something in that home that you can purchase as a bill of sale for a reasonable amt if the transaction goes through. You may to be creative. Of course this IMO. Hope this helps