Simultaneous Closings
I have an option contract on a property that is being short sold to me. I have an end buyer with proof of funds ready to go. I would like to do simultaneous closings. Can I use the end buyer’s proof of funds for my closing with the lender? (The simultaneous closing is between me and the seller and me and the end buyer)
[ Edited by JackDavis on Date 10/29/2008 ]
The HUD should spell out all info for the closing between you and the lender. Why is your title requiring you put the info for the second closing on the same HUD?
Regardless I will be happy to check if my title company can assist you with that.
Where is the property located?
What kind of simultaneous closing are you looking to do?[ Edited by JackDavis on Date 10/28/2008 ]
I apologize; I meant simultaneous closings between me and the homeowner with bank approval of them short selling their lien. Can I use the end buyer’s proof of funds?
If your using the end buyers proof of funds are you disclosing to the short sale lender the nature of the transaction? If not, why would anothers buyers funds be relevent to you buying it?
those days are gone. You CANNOT do a double close without funding the first close.
have any heard why this is the case?
This was a title/escrow company (First American, and Stewart) so I think they are regulated by the DOI.
Also, the deals I was working, were a note sale and REO, not short sales, and I ran into the same hiccup.[ Edited by cjmazur on Date 12/18/2008 ]
You must carefully read the short sale approval/demand letter and closing instructions.
It will guide you.
When this happens in my short sale deals, I provide a revised contract of sale, a revised PHUD1, and a proof of funds or preapproval.
Sometimes the lender simply agrees to the substitution of Buyer.... while other lenders have insisted the process begin anew.
Thanks Jack B. Actually , the seller is recieing nothing outside of closing. I;m off the contract. My buyer is buying direct from seller. Basically just a fee. Lawyer recommended it. It no different than the auctioneers up here that auction ss and require a fee to sell property.
Thanks !!! It is too late for transactional funding. The buyer is using quicken loan which has a 3 month seasoning policy.