Double Close Vs. Simultaneous Close Vs. Collapsed Close
Hey folks,
I am hoping for some final clarification as to the similarities or differences between these three types of closes.
With a double close, I assumed you have to take title in your name, even if for a few minutes, and then transfer to another.
Question: Doesn't this bring up the issue of title seasoning? IF so, isn't the only deal type you can do this successfully with a deal where you wholesale a deal to a rehabber?
I assumed simultaneous close and collapsed close were the same - title never goes into my name, I am just collecting my assignment fee, and title goes right from owner to buyer, so no issues of title seasoning exist.
Am I understnading correctly? Is there anything I am missing here??
Any help is appreciated, thank you, Dave
Hi:
Double close and simultaneous close are the same thing. Yes, you will hold title for a few seconds. Yes there can be title seasoning issues depending on your buyer's lender.
Not sure what a collapsed close is... You may mean an assignment of contract. This is when you sell your position to a buyer(for an assignment fee) and he/she closes with your seller. This method will present no title seasonong problems. However, your buyer's lender(ie:hard money lender) may have a limit to the amount of assignment fee they will pay.(Most do not like to pay one over 5,000)
Let me know if this helps.
Good Luck <IMG SRC="images/forum/smilies/icon_biggrin.gif"> [ Edited by results_one on Date 01/26/2004 ]
results_one,
any recommendations on which is the best way to wholesale property after a short sale?
aren't pretty much all lenders these days requiring 'title seasoning'? perhaps the only way around this is to use land contracts and just change the beneficiary, etc.?
thx
Newincome:
I'm not sure. I am famalier with wholesaling but still a newbie when it comes to short sales. If you don't get any responses, post this question in the short sale forum and I'm sure they can help.
Good Luck!
[ Edited by results_one on Date 01/31/2004 ] [ Edited by results_one on Date 01/31/2004 ]