Posted by Mark-NC on November 30, 1999 at 21:07:15:
Bud,
I am refering more to the fact that the lender may not do the deal without seasoning on the title. Are you saying that the title company may have a way around that?
Just curious.
Mark
Simultaneous close if my buyer is getting a loan?? - Posted by Tyler
Posted by Tyler on November 30, 1999 at 13:07:59:
Up until now, all the flips I’ve done have been with cash buyers so this has never been an issue.
I’m about to do a simultaneous close on a property, and my buyer is actually getting a loan. Is there anything I need to be aware of? Are there any red flags that will go up with the lender when they see they are issuing a check to “me” though I’m not the one on the deed? Seems like they would question the deal…??
Thanks in advance for any insight…
NT
Re: Simultaneous close if my buyer is getting a loan?? - Posted by Bud Branstetter
Posted by Bud Branstetter on November 30, 1999 at 14:34:40:
The closing agent is the most important factor in a simultaneous close. If they will not issue a title commitment to the lender the lender may not do the deal as Mark describes. Interview the title company so they know what is going down. If they feel they can do it put all instructions in writing to them. The title company will issue you the check, not the lender.
Re: Simultaneous close if my buyer is getting a loan?? - Posted by Mark-NC
Posted by Mark-NC on November 30, 1999 at 13:43:25:
Tyler,
Yes, you should be aware that some lemders will not let you do this. I have run into this situation before. You might want to ask the lender before you proceed. If it gets down to it you can Assign the contract to get around it. The only problem is the disclosure issue of how much you got it for.
You could sell it with owner financing and sell the financing at closing as another option.This is not an issue with most note buyers.But if you have strong credit buyers they will not want the higher rates that go with this type of financing.
Mark