Dealing With Title Companes
I have a problem? How should I Instruct the title company to pay me for my 60,000 assignment fee on the HUD-1 sheet. I have a deal with mortgage company for a totla contract price for 80,000. I am selling to my buyer for 140,000 dolars. However the contract price on the hud-1 has to say 80,000 for the company to approve.
How would an experience investor handle this
Big REDD:
First I'd like to say THANKS for buying my eBook(s)!!!
And to answer your Q.
How did you write the Contract?
Is this an REO?
Does your Retail Buyer have a mortgage or is it all Cash???
Do you have an RE Atty experienced with simultaneous closings and your transaction?
Have you discussed this with the Title Officer?
REDD -
Answering these above Q.s can help us to guide you in the RIGHT Direction!
BTW-Sounds like a fantastic deal...if wrote the paperwork up correctly...AND the bank doesn't balk at you.
I hope this helps!
Derrick
Is this an REO?
Does your Retail Buyer have a mortgage or is it all Cash???
He has a loan from and employee trust.
Do you have an RE Atty experienced with simultaneous closings and your transaction? No
Have you discussed this with the Title Officer? No not yet because it's my end buyer choice of title company.
Well the contract is assignable. I am waiting for written approval from the mortgage company. I got verbal approval from them to do the deal in the first place, but my end buyer who I was flipping to, ended up flipping it to someone else. To make a long story short I let him use a contract that he signed with my seller for for 160,000 and that ended up being on the hud -1 sheet. I was to get paid my assignment fee in the form of an invoice, some technique my buyer wanted to use. Blunder on my part I know. (But Hey I still control the deal legally anyway my contract is recorded at deeds) Now my buyer wants to get a new title company and do it there. I am thinking of cutting him out of the deal completely and working with his end buyer and his title company (the title company in question) because I felt like he was trying to be slick and make 40,000 off an assigment skipping a doulble closing to save money. And I don't have time to wait two weeks for a new title search. The title company in Maryland will balk at a double closing because there ultraconservative. I did a deal like this before and the title company just my fee on line 403 of the HUD-1 as a payofff and it went by the mortgage company unnotice.
Now you know the particular please help me Derrik
Inquire with the Title Co and their own inhouse lawyer as to whether your re-sell can be closed via a "deferred settlement" Process (closing the $80K transaction using the corporate trust loaned funds(that can be escrowed by the title Co.)
since the funds are NOT coming from a Conv. Govt. Insured Lender Underwriting process you should be able to meet the conservative level of COMFORT needed by the Title Co.
Make sure you discuss your intentions and disclosure to your end buyer(+ his Atty) so that everyone is on board to complete the transaction.
Deferred Settlement are rare but can be done successfully. however the Title Co. Is the risk- bearer in these transactions and don't like to expose themselves to RISK if they can help it.
You mentioned that this title co. is the end-Buyer's choice...ask the title co. if they can recommend an RE Atty. to assist you with this and I am certain your deal will get done.
Yitle co.s DON'T like simos or double-closings with no addl. insurance sales... They DO like doing business with Atty.s they know however.
All the Best to you!
Derrick