Question on double closings

Is it possible to have a double closing… and fund the first closing with the second closing?

For example,
If I’m doing a short sale, and I’m closing first with the bank for $400k
then 1 hour later
I’m closing with an end buyer for $430k.

Is it possible to use the end buyer’s payment to fund the first closing? It doesn’t seem likely, but I heard someone else mention that it can be done.

I live in NJ.

yes, if you are using the same closing/title co.

Has anyone ever done a double close like this?
I’m even hearing that it’s illegal. How do you find an attorney willing to do this?

I live in New Jersey… if you’ve done this before, please let me know which state you live in and if the rules even vary from state to state

Because it doesn’t make sense to me… using my Short Sale example above, what you’re saying is:

There’s 3 parties at the closing room: Me, the bank, and the end buyer.

  1. The end buyer wires his mortgage payment into the attorney’s escrow, before he even gains any ownership of the home. (This sounds very unlikely already, am I missing something here?)
  2. The attorney then uses that money to fund and close the first transaction with the bank.
  3. Transaction #1 is done, and I own the home.
  4. The closing attorney writes me a check for the profit (in this case $30k).
  5. Then I just sign over the ownership to the end buyer, and I take no money from the end buyer because everything is all paid for.

It seems logical, but Is this correct? ?
Where can I learn more about this?
Please share any comments you may have on this, because it can truly be helpful to all of us

Macwagner, thanks for the reply, I’m not doubting you but I’m trying to fully understand this.


To know knowledge you can not double close a property that way. Really the title company would be committing fraud, plus you can not assign a short sale so you need to close which is right. Now if your buyer is willing to pay cash, then you can probably swing it. Double closings are touchy subjects amoung title companies and you can call 100 before you find one willing to do it. Best way to find one is check out a local REIA club and ask around who does it.

With a short sale, the bank will be selecting the title company to keep cost down in my experience and this will make it hard for you do to that. The bank does not want to see you making a profit off a deal with them. The title company works for the bank and will put them first.

Now if cash is involved, you probably be ok.

I just did a double closing after a ton of work…In the end I had to close cash then I flipped the home to my buyer…I never was given the option to use my buyers money which seems odd because he paid much more than my buy price…Also this sub prime meltdown has tied up a few other deals I have going…I may have to close cash on 2 others if things proceed this way in the mortgage industry…

I’m in CA and have not had any of the issues being spoken of here. I have assigned short sales and done double closes with NO issues. I also have a list as long as my arm of title companies that will do double closes.

Rookie…looks like your getting some deals done. I remember couple months ago you saying you could not find them in NY…

Sorry I just got your message…Yes I have found some good stuff to start my cashflow quest…But at the same time I have been caught in the mortgage industry changes and that has held up some deals…But I’m considering my options but all is going fine so far…Closing cash is an option but the cash on cash return gets halved when you close cash

Really the title company would be committing fraud

how so? there is a clear chain of title. contracts all around. everyone agrees to whats going on. where’s the crime?

what is everyone talking about? Illegal? Can’t find double closers?moonstruckprincessa has got it right because that is the beauty of a short sale, right??? The “wholesaler” or middleman get the profit from finding the buyer and seller and putting them together. The wholesaler just owns the property for 10 minutes then assigns the contract over to the new buyer.