New preforeclosure deal, simultaneous closing? - Posted by Jon
Posted by Jon on May 03, 2006 at 10:58:41:
This is currently an active deal. Please help. I also posted on main board because I wasn’t sure what category this falls under so my apologies in advance.
Here is the scenario, and this is my first deal ever.
I found a pre-foreclosure deal. The homeowner just wants out, and keep credit intact, and get some money for moving expenses, food and clothes.
Agreement of sale between him and myself is already signed for $150K. Comps for other homes are around 230-240 fixed up. This house does need some fixing and updating but still solid. Mostly it’s just dirty. Cleaning hasn’t been done for decades.
The 150 is total for the first and the second mortgage.
I was planning on just cleaning it and wholesaling this property to another investor. I just bought a new primary residence literally weeks ago, I have no significant cash, and my credit wasn?t that great either when I bought my home.
As crazy luck would have it, as I was cleaning the home to get it ready to start showing it to other investors, I was approached by a neighbor that wants to buy the home for their kids. She offered to buy it from me for 200K provided I finish cleaning and painting the living room.
Awesome I thought, my first really great deal.
But here is where I?m really confused. How do I pull this transaction off???
I know there is a simultaneous close involved somehow, someway, but really don?t know what steps to follow.
Just to reiterate, I?m in no position to get financing right now, so I can?t have title in my name. I tried hard money but can only get 65 LTV.
It would be great to close the first get all the liens paid off stop the foreclosure, and sell to new buyers and walk away with a check.
Any seasoned pre-foreclosure investors that have done this already and are out there?
Any advice? Thanks in advance.