Conventional Financing / Closing With SS
in theory, I would much rather use a closing attorney who is familar with creative REI on all my deals. However, I am working on a short sale for which I am getting conventional financing from a normal mortgage broker. The broker wants to use his closing attorney who is I'm sure a good guy but not one who closes a lot of SS or other unusual deals.
Just wanted to get feedback from the gallery on whether people have had good / bad experiences using conventional financing / closing on SS deals, and what I shoud look out for, double check with the attorney, etc.
Also - the owner in this case is interested in signing a power of attorney so that he does not need to go to the closing. I assume that if he signed it over to me as POA, this would make the transaction less than arms length and create additional examination / red flags from whoever would care. Does the gallery agree? I was thinking that I would just get a friend of mine to take the POA responsibilities and go to closing on behalf of the seller.
Thoughts?
The less complicated, the better. Have the Seller show up and sign the papers...
There is nothing unusual in a short sale acquisition closing other than the preclosing documentation.. and the closing agent's conformance to the short sale approval letter (closing instructions, terms, conditions, restrictions, etc.).
It isn't so much the lawyer closing the deal as it is the Title Company insuring the title for the Purchaser. They'll have a ton of questions....
[addsig]
Thanks, SSPro.
My concerns originated when, after applying for financing, I got a call from the lender's closing attorney's office. The Paralegal wanted contact info on the current loan holders to collect payoff statements and so forth. I explained that I have the payoff statements, but they are under negotiation. She asked what the closing purchase price was to be, and I said that was still undetermined. She asked then why she had a P&S contract (required by the lender) specifying a dollar amount. I explained that there would likely be a replacement P&S with a lower figure, that the original P&S specified a figure that represented the MAXIMUM i was willing to pay and was executed to begin the financing process -- even though it was known that the actual payoff would ultimately be lower.
All these types of things just caused me to worry that they might botch something up, or that we might face a hiccup along the way that neither I nor they know how to handle... :-?
So, you are proceding as if you have mortgagee short sale approval... when, in fact, you don't. Hmmmm.
I wouldn't spend the money for title or appraisal unless/until you have the terms of mortgagee short sale approval in your hand.
[addsig]
The deal was simply too big from a cash perspective to finance myself, and too big (potentially) from a profit perspective to not move forward with the financing just in case. The last thing i want is to let this one get away because I could not get the financing in place fast enough. Part of the negotiation with the lender is the speed with which i am able to close.
All that said, it is my first SS, so maybe the reality of it all is that I'm just fumbling through the process the best I can... :-D