Posted by Innovator on May 20, 2006 at 01:11:41:
There is a pretty simple way to do the same thing with only one seller, one buyer, one sale, and one appraisal. There is no double contracting, no simultaneous closing, no assigning your contract, no acquiring or selling of an option, no private or hard money, no loan fraud, and your down payment and improvement costs, if any, comes back to you at closing! It?s safe, ethical and legal in all 50 States, and creates no problem with almost all lenders.
By using a simple trust (works like a lawyer?s escrow) you can hold the property by a third-party trustee (who is bonded, carries E & O insurance and has a legal fiduciary responsibility to look out for all the parties interests). The property is placed in a trust and each beneficiary gets his contribution to the trust in cash at closing from the title company. It?s pretty simple for any attorney that knows what he is doing. Mine can draw one up for about $300 (in less than 24 hours). I?ve done several of these and have had no problem with any lenders. It is the only legal way I know to get ?cash back? at closing.