Yes, you do have to close the deal completely but it doesn’t matter where the money comes from. You don’t need your own financing. You could pay all cash if you have the money available.
When you do a double closing you are in effect paying all cash because the 2nd buyer is paying all cash to you and then you are paying it to HUD. This all happens basically back-to-back. All HUD and VA as well as most REOs from banks require a double closing.
Double closings happen all the time with HUDs. Your agent is misinformed.
Your closing agent simply closes with your seller first and ask him or her to exit the room and then closes with your buyer that brings your funds…a check is cut 4 your seller and remainder goes to you and closer’s fees…closer should be aware of this closing in advance
My agent does alot of flips for me, but he said that it could not be done with HUD. The reason was that Hud required that I had to close the deal completely out (finding my own financing) and then I could sell to anyone. Is there a way around this?