Can someone please help me? - Posted by Charity

Posted by Robert SC on January 23, 2001 at 23:16:27:

Once it’s under contract you must have a title check done immediately by your closing agent, to head off any problems before closing…you need to have a clear title. Lender will check to see if you have clear title.
#1 is correct
#2 is correct(as seller)
#3 your buyer should submit contract to lender
#4 is correct
You will get the difference of closing cost (you should get seller to pay all…and pay as little as possible with buyer)and the $60k you paid for the house and the $75k that your buyer brings to closing. If it’s no money down, who cares, as long as buyer brings $75k check to closing. You should not have to confront the lender. Be sure that you instruct your closing agent that he needs to schedule the closings at least 2hrs prior to each other. Call the buyer with the time and have him or her call your agent to get the exact amount needed to close. Close with seller first and instruct him or her that monies will be paid later that day(do this prior to close). Close with buyer, give him or her the key, checks will be cut, give seller his or her share and you grab your $14k or so and spend it wisely. I hope that this helped you in some way…Just stay in control of your deal, and it shall work out fine…oh yea…your earnest money deposit is all that is at risk…

Can someone please help me? - Posted by Charity

Posted by Charity on January 23, 2001 at 16:04:48:

I need someone to sort of walk me through the process of “flipping” this property. I will be able to get under contract from the seller for $60K. Then I will flip for $75K to the buyer. I need to know how the paperwork works exactly and what to ask the buyer’s lender to make sure we don’t have seasoning problems. Buyer is putting no money down (Nehemiah loan), so they cannot pay me for the contract. It will have to be a simultaneous close. I do have an attorney that does those, but I need to make sure my paperwork is right beforehand. Here is what my plan was:

  1. Write regular P&S agreement with the right to assign. Put up very little earnest money (is that the only liability I have if the buyer falls out for some reason?)

  2. Write up contract for $75K with buyer (do I sign that one as the seller?)

  3. Submit my contract with the buyer to the lender.

  4. Go to closing.

Now, I know I must be missing some steps. Does either party have to know what I am netting? Will there be seasoning problems? Do I need to do a title search or let lender do it?

If anyone would walk me through this, I would be glad to pay a fee once it closes. I am just paralyzed until I make sure I know what I am doing!


Couple of things to look out for - Posted by Bud Branstetter

Posted by Bud Branstetter on January 23, 2001 at 23:33:37:

Make sure you title company closer understands what you are doing. Put the steps down in writing for them. Find out if they have a problem with giving a title commitment to the lender without it being in your name. Find out ahead of time if the lender needs the title commitment ahead of time or has seasoning issues.