It may be a difference in interpretation as to the meaning of a double close and a simultaneous closing. In some areas of the country, I suspect these terms are used interchangeably with no difference the conduct of the actual settlements.
In my area, a double close means that I close with the seller, before I close with my buyer. I have to fund the purchase of the property, and take title to the property. At some point in time (later the same day, or week, or month), the buyer brings his funds to the settlement table and takes title to the property.
In a simultaneous closing, I use my buyer’s money to fund the purchase from the original seller. My settlement with my buyer may actually happen first with all proceeds held in escrow until the settlement with my seller takes place. If your settlement attorney is really cooperative, the title will pass directly from your seller to your buyer. You stay out of the chain of title and save some settlement costs along the way.
CASH OUT, Simultaneous -Vs- Double Closing - Posted by Scott (UT)
Posted by Scott (UT) on March 09, 2002 at 08:00:42:
What is the difference between a Simultaneous and a Double Closing. I have heard there are lenders that do not like one or the other. Does anyone know why that is and which one would you use. Here is my deal.
I have the opportunity to pick up a property for the balance of the mortgage. The balance is $130,000 and the Market Value is $150,000. I have a buyer approved and ready to go for $149,900 on a 90-5-5 loan. Their lender would loan them approximately $132,000 after 5% down and I would carry the 5% difference of $7500 on a 36-month note at 10%. I have an option on the property (recorded), for the balance of the existing loan.
What should I do and why. A lender told me to do a Simultaneous Closing and not a Double Closing. What is the reason for that? Will I get a check at closing for $2000? This deal can happen on Monday.