CANT FIND FINANCING ON A SHORT SALE FLIP
I NEGOTIATED WITH THE BANK TO TAKE 30K ON A BALANCE OF 80K MY CO WILL PAY 30K WITH A HARD MONEY LOAN. THE CURRENT RENTERS WANT TO BUY IT AND WILL PAY 81K. I AM HAVING PROBLEMS FINANCING THEM BECAUSE I WILL BE ON TITLE FOR ONLY 1WEEK. IS THERE A COMPANY THAT WILL ALLOW SIMULTANEOUS CLOSE. NEED HELP THANKS DIETER 
Lenders will ask for the sudden increase in sales price. Do you have an answer ready?
You may want to try and owner finance the deal and sell the note at the closing if you can't find a lender that will allow short seasoning title deals.
If I understand correctly. You have completed the negotiation on the short sale price. Agreed amount $30,000. You have $30,000 available from (Co) is that your company, cobuyer ???.
In any case take the money and close the deal. Stay on title and hold your Title Policy Open. Then negotiate your simple sale with the rentors. They obtain a loan to purchase and you are out with profit in hand.
Unless I have missed something. Please advise. Lucius
How do you keep the title policy open?
How do you keep the title policy open and why this changes anything in the situation he described?
Hi DIETER,
Good job on your acceptance. Get this closed as soon as you can.
The key about the financing is that you need to direct the tenant to a mortgage broker that does not have an issue with seasoning. Once you locate one in your area, send your buyers to them right away. If the renters (buyers) have poor credit and will require sub-prime money, this will be a little harder to put through. If they have ok credit, you can definately get this done.
As of the issue with the sharp increase in price...... If this brought up, all you need to is to simply tell them that you bought it out of foreclosure at a below market rate. This is the only thing that they appraiser / bank needs to know.
Worse case is that you have to pay the Hard Money fees on $30,000 for a few months until you can locate a lender to complete this transaction for you. I would assume that the rent is high enough to cover those payments for you!
Best of Success!
BAMZ