Double Closing & Proper Disclosure
I have multiple people in the pre foreclosure status who I am working with on gettting out of their situation. Here is an example of what I am doing:
Joe Foreclosure owes $200K
He sells to me for $100K
I find end buyer who is willing to pay $150K
I would like end buyers CONVENTIONAL financing to pay for my initial purchase of $100K and I collect $50K difference
I am hearing mixed things on what needs to be disclosed. I have full intention of disclosing to Joe Foreclosure and end buyer what is going on, however, some people (title & escrow companies) are telling me that full disclosure needs to be made to end buyers lender and lender accepting short pay? If this is the case, correct me if I am wrong, but the lender accepting short pay will not agree to this because they are losing money, and the end buyers lender will not be ok with this either. If so, how do I get around this and make it work?
Thanks for the help.
Qwest in Los Angeles
I would watch what representations are made to the bank during the short sale.
I agree, I do not want them to know that this property is being flipped. However, it seems as though the title companies want to tell all parties everything. Do I just need to find a new title company, or is there another way to maneuver around this?
Thanks!
A good experienced escrow officer is the key. They will be able include in small inconspicuous print the neccessary disclosures to cover your tail to ALL parties just prior to closing. No need to include your own forms in any package/offer to the ss lender. Might as well blow a horn announcing your coming.
SS Pro, Any Thoughts???
certifed check.
There have been stolen and forged bank and certified checks floating around here.