Urgent...... Left Closing Open Today!
The lender approved the short sale for $120K (to get $115K after closing costs). I put property in trust (me as trustee) with seller as beneficiary; seller signed Tx of beneficial interest to my company. I signed a contract with end buyer (my partner) for 160K (seller is the Trust with me as trustee). We were to use the difference (160K - 115K - closing costs etc.) for rehab.
The buyers lender and appraiser would see the sellers still on title so I recorded the deed to trustee. Since the property was already in the trust my attorney said we just need a single closing (instead of simultaneous) where the Trust sells to end buyer.
After the closing costs the HUD showed 29K going to seller (trust). The seller (me as trustee) and buyer signed all docs; loan funded; then the lender said that all funds should go to them! Obviously if not for the $29K there is no deal!
What can be done to save this deal?? I asked the title company to leave it open until tomorrow.
The lender should get a HUD from first closing (seller to trust); but the trust already owns the property?
Many investors put the property in a trust and record it; so how do you sell?
I need to find a solution ASAP........tonight!
How about this... That money shown on the HUD is was made in error. That 29k is NOT going to the seller but to a construction company for repairs the house needs. Correct the HUD and send it to the bank. How is your partner financing the deal? Whos the lender?[ Edited by shanehaffey on Date 01/16/2008 ]
Since he was buying for 160K the loan amount was www.152K.The title company sent this HUD to lender;so I guess the lender (giving the SS) knows that loan amount is 152K
You simply need to close on the purchase contract that you showed the lender. It should be seller in foreclosure to the trust as the buyer. This is why you need double closings. One HUD goes to the foreclosing lender showing the seller getting -0-. The other showing the seller getting the $29k.
Fire your attorney.