Hi All,
I need some answers on my 1st FHA short sale I am doing. I want to purchase the property provided the lender approves a short sale and then I want to sell it to an end-buyer, which I already have lined up.
Question: With FHA can I have a back-to-back closing? or do I have to hold the property for a few months then sale?
:rolleyes
The 90 day seasoning rule is the financing for your end buyer. As long as your end buyer is not FHA financing then you can Back-to-Back close the property.
as long as YOU are not doing FHA financing either.
http://www.reiclub.com/forums/index.php/topic,35147.msg166930.html#msg166930 might be some info here
I have found ways to get around the seasoning issue even if the end buyer is using an FHA loan. When you first meet with the homeowner to get the short sale package completed have them sign the deed over to you. That way by the time the closing takes place it has more than likely been more than 90 days.
Why do you choose to sign the deed over rather than using an option contract?
You do a shortsale after the owner has signed over their deed to you?
Homeowners are okay with signing over their deed? I am sorry, I am just pretty surprised. Do you use a quitclaim deed and get a new deed at settlement- or am I missing something?
As far as I know, there doesn’t seem to be a way to use the option contract and avoid the seasoning issue.
The problem with getting the deed is that the lender will not short sale. If you are thr recorded owner of property and can afford the payment then they will not short. Your better off using a land trust to avoid FHA seasoning. There are many title companies that will still close short sale transactions using a land trust. I also know of a nationwide title company who will close these transactions.
I have always had luck using a land trust. I haven’t tried the option contracts yet. The homeowners that I have dealt with just want the property to go away. They are perfectly fine with signing the deed over to a land trust and they are shown as having 100% beneficial interest. This gets the property out of there name so no other liens can be recorded on the house, but they are still the beneficiaries of the home. By the time the short sale has been approved and your end buyer goes to closing the 90 days should be passed.
Great info. !!! Youre a better saleman than me. Up here in New england everyone is so suspicious. getting the deed is tough.
Have a great shortsale happening but it was just derailed with the Buyer’s financing. The bank just gave me the approval last thursday and are forcing us to close on the 25th with an auction on the second.
The buyer is using quicken loan who came back to the buyer atty and stated that it will need 12 months chain of title.
Both of our atty’s have no creativty. Both were recommended. No sense of urgency. One suggested , I try to assign the contract out of escrow. Go to short sale lender and say you want out and let them know there is another buyer in place. Buyer is willing to pay cash. who knows when he see’s what I could make. Might change his mind. Another lawyer said that I might be able to amend contract and assign new buyer to existing contract. Who Knows. has anyone ever addeda buyer to an existing contract and then just transfer deed after closing.
Thanks