Assignments???Help!!!
My partner and I have been working on a deal for about a month. We had put a contract with an assignment clause. Found a buyer ,approved for loan, days before the closing the closing attorney asked us to get a letter from the mortgage company on how to distribute funds-we talked to the loan broker and he said they will not provide such letter for 2nd closing funding 1st closing. This is the 1st time we have used this closing attorney. I really don't have the time to forma trust or LLC. We are trying to salvage the deal and was hoping for any suggestions. I'm in Georgia... :-?
Go to the commercial loan department at a bank and borrow enough to fund the 1st closing on a 90 day note. When the 2nd loan closes pay off the loan and interest.
Thanks Michael for your reply., but......We have house under contract for $380K and selling for $645K , banks we have spoke to need collateral for that amount of money, unfortuantely this is not an option for us. :-?
I'm sorry, I don't quite understand your question. By what mechanism did you assign your contract? And what is the lenders exact problem again? If all the attorney wants is a letter of instruction go ahead and write him one. And in what way would a trust or LLC fix this problem?
My buyer said the mortgage company will not fund the deal if they think its a flip, so we are trying to get the deal closed without having to do a simultaneous closing. There are issues with my buyer funding the first closing . The attorney needs a letter from the mortgage company... :-? [ Edited by hlprops on Date 04/07/2004 ]
Try a hard money lender will be more expensive but worth it.
Would a hardmoney lender loan for 10min.... What would the payoff be for this kind of short term loan??
Are you trying to deceive the buyer's lender, or just trying to fund the first closing? If you are trying to fund the first closing I do not know why you can not have a dry closing with the owner. Then have your closing with end buyer. Then the proceeds are used fund the first closing. I have never done this, but know of people who have. I did not think it was a big deal.
Is your RE lawyer investor friendly?
Brenda
I'm trying to fund the first closing....and mortgage broker said they will not here about funding first transaction.....It used to not be an issue...
Does anybody know a good hard money lender in Georgia who would fund this deal??
If your deal has that much profit, close it. Then flip it. If your current deal is for real, similar deals will not be hard to find, should your current buyer walk. Hard money is typically 10-3 pts and 10-18% intereest only, usually no penalty. You need to establish a relationshp with a lender. Good luck, but if your deal is as good as you say, you will do fine.
whats the status of your sellers title? I'm assuming they have a first mortgage as well.
Options: (don't know which will work because there are more details)
Close with the first subject to their mortgage, take title in your name or that of a land trust. Subsequently close your deal ( a day or a week later) Pay off the first.
Close with your seller on a land contract with a one week balloon.
if you think a trust or LLC will fix your problem they can be established in half a day. There are even ususally attnys who have full-fledged corporations "on the shelf" for those who need them quickly. (though I gotta say I don't see how this fixes your problem).
If the mortgage commitment is solid you might get a commercial bank to lend the bridge money.
Hi Props:
Why dont you assign the deal to your new buyer and carry back a second for the difference? You can then have an agreement with your new buyer that they
will refinance within so many months.
You might have to switch attorneys and ask for an extension.
Best Riches,
Jeffrey Adam
[addsig]