Buyer Wants Cash At Closing?
I have a buyer who has $35,000.00 in equity in a home that he is buying in Texas. He wants to walk away with that cash at closing. Is there a legal way for a buyer to walk away with his cash at closing?
Thanks. The buyer is a real estate investor and he will put the home on the market for sale or Lease Purchase after closing. He wants that cash as a cushion for payments and taxes until he has a buyer/tenant. It is a new home. Does this help?
For the purpose mentioned above your buyer could cash-out refinance the home within the year…? Some banks will refi in as little as three months. Your buyer could also consider taking out a Home Equity Line of Credit.
The only other way that I could foresee him receiving cash would be if your buyer found a buyer for the property and sold the property outright though with this approach your buyer may have title seasoning issues as most banks require the owner to be on title for twelve months.
If your buyer has not closed on the property, though slim, there may be a chance of facilitating a double closing. No, double closings are not illegal though, because of the scrutiny that double closings have received with regard to “illegal flipping operations” it is very difficult to find a title companies in Texas or anywhere for that matter that will facilitate transactions as such.
You need to attend your local REI meetings and find out what title companies are doing what. Hope this helps. Good luck to you and your buyer.
Thanks. What if the buyer submits the purchase contract to a lender that calls for repairs and holding costs of $35,000.00? The lender and title company would have notice of this contract addendum and the knowledge that $35K was coming back to buyer or some other company?