As I understand the process you have to record title with the county. In a double close that would not happen.
Of course, the odds are superb that I am wrong.
FYI: In double closings, the deeds get filed simultaneously.
I’ve heard the best way to get around the seasoning issue if you don’t have a cash buyer is to work with a mortgage broker that can find loans that don’t deal with the seasoning issue. The brokers love the business & finding the right loan is what they do!
I just heard back from the 2nd mortgage and they rejected my offer of $1000. They are saying the house is worth $9000 more than what she paid for it. (Not True) If it goes to the auction, are they owed anything? She owes at or above market value for home. The lender is First Franklin. Has anyone dealt with them before? Also, does anyone have any suggestions?
I’ve pulled off 3 double closes, and havent been able to since.
There are ways around title sesoning issues, an alternative is having your fees paid out on the HUD, not actually purchasing the property
There are very few lenders who dont have title seasoning requirements, I know of some that allow one day on title, but thats for a different scenario.
I think the way I did it was by simply not particularly telling the lender about the purchase, and having the right closing agent who is experienced in double closes.
Saw the posting thought I should put my 2 cents in.
If the house goes to auction, the first lien holder gets whatever they are owed or whatever the purchase price is, whichever is less, the 2nd gets the leftovers.
Do comps and/or BPOs and send them to the first and the second, and explain the situation in detail, they’ll get it in the end.
If you’re going to sub2 the 1st, and short the second, 10 cents on the dollar should do it, offer $2000, then $2500. Then stop.
You may be getting hung up on a deal that isn’t worth the time and effort.
Typically if you short the 1st, they’ll tell you the max the 2nd should receive. If the 2nd doesn’t agree to it, the 2nd gets zilch & both the 1st & 2nd foreclose.
Well, what happened?
jodifunke
In order to buy the house, You will need to get a Notice of Abandonments signed by the trustee who will send the paperwork to the court. As I understand it, if you try to work with bankruptcy attorneys, it may drag on for days. Have the trustee fax you a blank copy of the notice. When you have the trustee on the line, ask what you need to prove there is no equity in the house. If you need to fax in comps, do it. Typically the trustee doesnt spend more than15 mins per debtor.
steve
I am still waiting to hear back from the first. I did find out that my buyer is getting a conventional loan and I found a title company that will do the double closing. So, now I am just keeping my fingers crossed on the banks to work with me.