TAL - the title company or closing agent (attorney in some states) can provide you with all the information you need. Some of them do it regularly and can tell you exactly how it works. Be advised that each one may do it slightly different. Some are more investor friendly than others.
I even heard in this board that there are some that would close the second leg before the first… Not sure if this actually happen. You can search the board for double closings and read some of the information yourself.
Go to Onedaydough.com I think you’ll find they’re much cheaper, only charging 1 point.
The deal is, they will give you the necessary proof of funds for a small fee. At closing, once the buyers money is on the table, they will wire transfer the funds you need to close your first closing. you do your second closing, and then wire the money and 1 point back to them. Pretty simple.
If you have a title company that will allow it, it’s much better to just use the end-buyer’s money to fund the first closing. If your title company does not allow this, search around for one that does this practice. It’s very common, and it’ll save you thousands of dollars.
If this is a short sales that I negotiated and got approved + I can arrange funding for same day closing from seller and end buyer, will my end buyer’s lender have an issue with me having only a contract up to the day of closing and go thru the motions of approving my buyer and going to close based on the fact that I only have a contract to buy property at a future date or closing date only?
(providing no seasoning issue with lender)
basically i have no ownership at the time my buyer’s bank is trying to approve him to buy from me. is this common practice? what are the mechanics involved?