Posted by Jim IL on February 02, 2001 at 03:09:56:
Mike,
First, the T/B’er should NOT “back out” at the closing table.
And trust me, they will not, because they will be thrilled to be owning a home.
A simultanseous close is where all three parties show up at the title company or attny’s office.
You may do these in the same room, or two different rooms, it depends on the title company and how they do them.
This is what happens when I do them.
- all parties are placed into rooms to sign docs.
Each party signs the appropriate docs. - the lender for the T/B’er distributes funds to the title company rep.
- The buyer gets the paperwork and walks away as a homeowner
4.The seller walks away with a check if there is one. - You leave with the difference in the funds, which is your backend profit.
Who EVER said that title transfers without your seller getting paid?
They do get paid! (unless they have no funds due to them per the agreement between you and the seller.)
The seller gets their funds, and you get yours.
All are done at the same time, or minutes apart.
In fact, the buyers show up, along with the buyers lender rep or closer.
The buyer funds the deal, and all parties who are to get paid do.
Buyers funds are then cut up to pay the underlying loan off, the seller you have a deal with gets there share and your profit is distributed as well.
All this is done at the same time, or minutes apart.
Hence the term “simultaneous close”.
Call a local RE attny and ask IF they do simultaneous closes and ask how this is done if they say “yes”.
Bottom line is all parties who are to get paid do.
HTH,
Jim IL