Wholesaling Closing Agent Question - Posted by jpg

Posted by jpg on August 26, 2002 at 14:26:28:

Jim, thanks for taking the time to reply. The property is owned by a bank (after foreclosure). I am a real estate agent and submitted the contract myself. Are you aware of any other recourse I might have if their closing agent will not do a simultaneous closing?

Wholesaling Closing Agent Question - Posted by jpg

Posted by jpg on August 24, 2002 at 11:07:12:

I just made an offer on a property I want to wholesale and have received addendums stating that the seller will choose closing agent. I want to do a simultaneous close and don’t know if I can control the situation if I’m not choosing the closing attorney. Does anyone have experience with this? It is a moot point if the bank’s attorney is familiar with such. However, if they don’t allow double closingsI don’t know what my next course of action should be. Offer hasn’t been accepted yet but I want to cover all bases as I’m sure I will run into this again. Thanks!

Re: Wholesaling Closing Agent Question - Posted by Jim Kennedy

Posted by Jim Kennedy on August 24, 2002 at 18:45:03:

Here again is one of those questions that are difficult to answer without knowing some additional information.

  1. Are there agents involved? A listing agent representing the seller? A buyer’s agent representing you? Or are you dealing directly with the seller?

  2. Is the seller an individual or an institution? You mentioned “the bank’s attorney”. Are you referring to a bank that owns the property after foreclosure or are you referring to a bank that will be issuing new financing for your end buyer?

  3. Where you are located, or more accurately, where is the property located? Why? Because MANY aspects of real estate are governed by State law and local custom. Including who selects the closing agent.

If agents are involved, frequently the listing agent convinces the seller to counter with a closing agent that is conveniently located for the listing agent and one that the listing agent is familiar with.

If the seller is an institution (lender that has foreclosed on the property), frequently the institution will insist on a closing agent they use exclusively.

Micheala raised another good question? Who’s paying for the closing? Frequently this is dictated by local custom. It’s been many years, but if I recall correctly, in California the custom of who pays for what varies from Southern California to Northern California. Michaeala also mentioned that the closing agent represents the mortgage company. That’s not the case here in Texas. Here the closing agent is a neutral third party that represents neither the seller, the buyer, nor the mortgage company.

Joe Eckburg suggested that you counter with you choosing the closing agent. He’s of the opinion that the seller won’t let the deal crater over this issue. He may be right. However, I’ve seen deals blow up over a lot less. Depending on the circumstances of your deal, I’d probably approach this issue a little differently. Rather than a counter, I’d simply find out who the seller wants to use as closing agent and then, as Joe suggested, find out if the closing agent will agree to (and is competent to) coordinate a simultaneous closing. Tread carefully here. At this stage, you might not want the seller to know that you’re planning on wholesaling the property.

Best of Success!!

Jim Kennedy,
Houston, TX

Re: Wholesaling Closing Agent Question - Posted by Joe Eckburg

Posted by Joe Eckburg on August 24, 2002 at 15:26:08:

Counter their offer with you choosing the closing agent. If they don’t accept (in my area, if it’s a foreclosure, some companies only work with certain title companies), then make sure the closing agent/closing attorney agrees to what you want to do before you accept their counter.
I can’t see them letting a deal fall through because of this.
Good luck.

Re: Wholesaling Closing Agent Question - Posted by michaela-ATL

Posted by michaela-ATL on August 24, 2002 at 14:48:24:

who’s paying for the closing? i think it’s kind of unusual to make that an issue for the seller, because the closing agent is not representing the buyer or the seller, but the mortgage company. and the mortgage company usually has a list of atty’s they’re willing to close with, subsequently it’s usually the buyer’s side, that’s chosing the atty, because it’s their side getting the mortgage. a mortgage company could get kind of suspicious, if the seller insists on the atty (i would), since that would seem, as if the atty might have some kind of dealings with the buyer and might not represent the mortgage company’s best interest.
i’m not an attorney and anybody else please correct me in this, if what i’m writing is not correct.
just my thoughts