Simultaneous close ?'s HELP! - Posted by Jim, IL.


#1

Posted by Stacy (AZ) on December 07, 1998 at 18:18:38:

Mortgage Brokers and Lenders say the title won’t clear in time for a simultaneous close? The title would have to clear if you were buying it outright, anyway. So what’s the extra time needed for a double close? Once the title clears, it’s clear, regardless of who is buying the property.

It seems in reality they won’t have the needed time to check-out your buyer’s credit, or process the paperwork, which has nothing to do with clearing title. Is this really what they mean?

If it’s really some sort of title problem, ask if you can find an alternate title company to do the close. If they agree, start calling title companies ASAP to find one that will close in time.

If it’s really the lender’s inability to get paper-work pushed thru their organization, not much you can do but find another that will.

Something’s wrong with what they’re saying. Find out what the real problem is and post back.

Stacy (AZ)


#2

Simultaneous close ?'s HELP! - Posted by Jim, IL.

Posted by Jim, IL. on December 07, 1998 at 16:47:35:

Alright, I finally got this REO under a contract, with a closing set for 12/30/98 (the seller insisted, or they’d take one of the other 4 offers they had at the time). I also have a buyer, to take it off my hands with a simultaneous close. The problem is that all the mortgage brokers, and mortgage lenders in the area say “We cannot do a simultaneous close” because the title won’t be cleared in time. I NEED to help my buyers find financing that will come thru quickly. My buyers have excellent vredit! It is an REO, and title is clear right now, for my transaction, so it will be for my buyer too right?
How does this simultaneous closing work, and where can I find a lender to help my buyers. They have excellent credit, long term work history, and money down.
I don’t, and cannot get financed, thats the reason for the simultaneous close.
Can someone advise exactly what I can do to keep this deal going?
I can walk away from this with CASH, IF I can help my buyers get financed.
PLEASE PLEASE PLEASE send advice. so far you have ALL given me great ideas, and advice. That is how I got this deal in the first place.
So, if and when I pull this off…THANK YOU ALL in advance.
I promise to leep learning and share my experiences with this forum as i go along. On my way, I hope…


#3

Re: Simultaneous close ?'s HELP! - Posted by JPiper

Posted by JPiper on December 08, 1998 at 01:26:09:

The statement ?We can?t do a simultaneous close because the title won?t be cleared in time? is one that I don?t understand. What does ?title won?t be cleared? mean??

If what you?re talking about is the question of being able to convey an insurable title surrounding a simultaneous closing, then the question is one that should be addressed to the title company, NOT the lender. The title company should have no difficulty in handling a simultaneous close and providing title insurance to the lender and the new buyer. Talk to the title company about title issues?.not the lender.

On the other hand what you could be talking about is a lender with overly restrictive lending policies. I ran across a lender via a mortgage broker about 2 months ago who had a policy of not making a loan to a buyer to purchase a home from a seller who had not owned the house for 1 year. In other words, this lender had a seasoning require for the SELLER. Not all lenders have these policies though. In my opinion, lenders of this type are complete idiots. A good mortgage broker ought to be able to help with this?.someone who is willing to discuss the lending policy with an idiot.

It would help if you clarified this situation. To rephrase, title and title issues are the primary concern of the title company. As long as you can convey a marketable and insurable title to the buyer with the title companies help, the lender should not have a problem with it. The only way a lender would have a problem is if they have an internal policy that restricts the SELLER in terms of time of ownership?seasoning. What I?m telling you is that ALL lenders don?t have these types of internal policies. A good mortgage broker SHOULD be of help to you in this.

It would also help if you put your numbers on your deal out here. In the event that you have TRULY exhausted all possibilities in terms of the simultaneous close, there may be some other way of doing the deal yourself, depending on the numbers.

JPiper


#4

Re: Simultaneous close ?'s HELP! - Posted by SCook85

Posted by SCook85 on December 07, 1998 at 23:44:20:

You are a victim of lenders who don’t like investors. Many lenders will no longer do flips (there definition is anything that you have owned less then 6 months). Have you considered an assignment. You can possibly assign your contract, but lenders frown upon this as well. If the buyers are going FHA or something like that you can do an assignment. I was just discussing this with my settlement attorney, and asked how to deal with it. We couldn’t come up with a rock solid solution. My advice would be to call every mortgage broker in your area until you find one that can help. Don’t stop with the ones you have talked to. You might not be able to find a program. If not email me and I will se what I can come up with for you. I know how you feel. I have gotten much more creative on my last 2 deals because of the same situation. If anyone knows what we are going through and has solutions please advise me as to what to do. In August this was not a problem, September the rules changed.

SCook85