Need Help With Double Closing, Pleaseee...
Ok here is my situation, I have a bank own (REO). What I want to ask first is that, I already sign a contract for an offer at $39K and it was settle after all the countering at $42K, does this mean that another contract is to be written up? There was a problem with the lender I was working with, so now the price is for $42K and i don't have the fund for it. So I thought that I should do a double closing. My question for the double closing is:
1. Where would the letter of prequalifie of fund come from?
2. What are all the step that I need to go through to do a double closing?
3. If a new contract is to be written up for the $42K amount, could I do an assignment of contract? But I'm really look into double closing this one.
Please I need urgent help with this one. Somebody, anybody please help!!!
I can't believe no one in here have done a double closing before.
Hi,
there is actually a topic under this forum that goes over this. The topic name is:
"Double Closing question" and the user who posted that is "rajwarrior".
For your convinience I cut&pasted the major part but I suggest you go find the topic and read through it. Here is goes:
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Heres how a double closing works:
1) You sign purchase agreement with property owner
2) You sign contract with retailer/rehabber for a higher price
3) The retailer deposits funds into escrow with your closing agent
4) The owner signs the deed over to you and its put in escrow
5) You sign the deed to the retailer which is put in escrow
6) Retailer signs loan documents, which makes transaction complete
7) The closing agent delivers funds to the owner for the purchase price, the difference goes to you
The closing agent records the two deeds, one after another, at county land records office
I personally do not pay for a termite inspection or title insurance. You're not holding the property long enough to justify such expenditures. If you prefer to get insurance ask your title company for a "reissue rate" or a "hold open policy." It is also up to you if you want to pay for an appraisal. If you can estimate the fair market value (by using comps), you shouldn't have to spend money for an appraisal.
You should, however, have a title search done as part of your due dilligence. That can run from about $75-200. You can expect right around $100. To estimate any other expenses you should really meet with one of your local title/closing companies.
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good luck, Louis
Thank you louis for the help