Major banks have stopped double closings 07/01/02 - Posted by Frank Ross
Posted by Frank Ross on July 20, 2002 at 08:51:34:
It is time to look at what is going on. I posted, “have banks stopped flips?” on the financing forum. Willis Smith posted on this board “Freddie Mac” almost the same thing, the answer he got was do a double close. Kristine-CA posted “No Simultanteous/Double Close w/Countrywide” the fraud dept told her policy is no double closings.
I was told by two REO real estate agents that I would have to close or no deal. At that time I thought it was because I do not have the credit to close, but people that is not what happened on July 1, 2002. Banks have stopped double closures, both for selling REO’s and financing houses.
All of this is directly a reaction of the new Hud policy on seasoning. If you think it will not cause you to lose deals, think again. Your time and clients will be lost, no one is going to tell you until after the fact, why your deal was lost. Hud will not honor any deal with less than a year ownership, banks are now honoring that policy, both on sales and financing.
I know there are other ways to get around these policies, but I don’t know what will keep me from facing the fraud dept on any deal. They say full disclosure, but think about
a displeased buyer that makes the statement to the fraud dept, I didn’t know what he/she was doing cost me so much, or I’ve been had. You should be able to prove you did nothing wrong, but at what cost, loss of deal is nothing, compaired to your reputation.
If anyone can prove I am wrong, please do so.
I will gladly eat crow, wake up and get the juices flowing.
Spend the time to prove me wrong. I need help, and so do you.