Hi Everyone,
I have a shortsale that I am trying to sell using transactional funding. Is it possible to close on a shortsale deal using transactional funding where the C buyer is using a traditional mortgage.
Will there be seasoning issues?
I thank you for your answers in advance.
You can sell a short sale to an end buyer that is getting a conventional mortgage but there will be seasoning issues. NO FHA! Whatever bank you end buyer is getting the mortgage from make sure that they do not have a 90 day seasoning rule for there loans. Also, disclose what type of transaction it is. Tell them that your are buying and reselling within a few days of purchase. Some banks like Emigrint do not have seasoning issues for flips but they can not do this type of transaction. You always want to make sure the bank can handle the deal. Don’t get to the closing table and have the deal blow up on you.
That depends on the type of financing…
Also when you receive the right to buy you may want to consider deeding the property into a land trust and start the seasoning time period elimination.
Also if you use a trust have the title company you plan on using confirm that the trust is adequate for them to issue insurance.
You also may want to find a one day/two day lender who will close on your purchase. Just in case the title/escrow will not pass the buyers funds to the purchase escrow. They typically cost a half of a point.
Good Luck
.5% is really cheap. The usual going rate for transactional funding is usually from 1% to 2% with private lenders and 1.75% to 3% with transactional funding companies. I have a source that I can share for 2% if anyone needs it. PM me.
Thanks. Can youPM me the info on the transactional funding? The one I am using is charging me 2.5 points