Posted by Mark-NC on October 10, 1999 at 11:33:21:
Emmerson,
The concept is good BUT. This is probably what will happen. FHA and most other banks will not fund this deal beacause the title is not going to be seasoned under your name as the seller. This allways creates a problem with traditional lenders, There may be a select few lenders out there that do lend under these conditions but they are hard to find. You may have to go to a good mortgage broker who may know of this type of lender.
Another alternative is to offer owner financing and sell the financing at closing cashing out the deal.You can do this but in dealing with Hud homes they require the money to be there at close. Most note buyers do not table fund so you have to do some fancy dancing to make it work.It can be done and I have done it but you have to have some real cooperation from your title company.
Good luck!
Mark
I have a question about assignments (Emerson N. Duhart and/or assigns) and the alternative simultaneous closings.
Scenario:
While looking at a REO/VA/HUD list I come across a potentially good deal. So I do the natural and go into contract with an assignment. However my offer is kicked backed to me saying that this particular organization does not accept assignments; but will except my offer without the assignment.
Now I’m saying to myself: What do I do know? Then I recall all of the articles and messages that I read about simultaneous closings. You know the ones that say:
I called the title company and asked them if my buyer deposited his funds into escrow at closing, could they simply cut a check from escrow to the original seller to pay my purchase cost, cut a second check to pay for our closing costs and give us the balance.
So I was thinking…What If I found a buyer…Then got him/her qualified for a FHA or Conventional financing…Called the title company and tell them that I have a buyer and to get the simultaneous closing prepared…
This sounds great! Right?
Well one question…How will my REO/VA/FHA seller feel about this? Will they care? Does it matter how they get paid? Will the bank that has qualified my buyer care about the arrangement? Or…Should they even know?