Double Closing
I currently live in a house that I lease optioned from the owner. I've been here for 3 months and someone offered to buy my house. So my question is, what steps and paper work do I need to do a double closing? Where do I start? Thanks in advance for any advice. From a real Amateur. 
Your contract should state that you can not sell or sublease the house to someone else.
When I have a buyer for a property that I am currently lease optioning myself, I usually contact the owner and tell him that I will be coming into some money and would like to cash him out. Offer a lower price than that of what you have it under contract. The worst the owner can say is no, then simply execute a dual closing. If the owner says yes, you can make a better profit off the sale of home. Make sure that your buyer is pre-qualified, and know if he will be going conventional or a sub-prime lender. Sub prime lending are for those who have "less than perfect" credit and most have title seasoning issues. Title seasoning issues are not owning the property for at least 12 months, which you have not. Conventional, or your buyer with great credit, won't have as many hoops to pass through. Get a letter of pre-qualification from the buyers mortgage broker or lender, and see if you can contact them. As a mortgage broker, deals fall through with lease options, make sure your buyer isn't wasting everyone's time.
Newbie here..but this question has come up before. In my L/O i have right to assign my option to others...IE. ..New Buyer. So you can dble close if your title/escrow company will do that...some require "seasoning6-12 months. Or you can come in as a lein holder too. Dble close will cost more. Ask the closing agent...if they see dumfounded get another one until you find a creative person.
Hello Gang: It's been awhile since i've be online. I just read the last several posts and I don't understand something. In a L/O if party A has the option and party B wants to buy, why would there be " seasoning" issues for party B?
Thanks
Kerry
You may not need a double close. Assign the option (sell it) to the buyer and let the buyer close with the seller.
If you use a double close then you will find that you have twice the closing costs and the potential problems that come from seasoning issues given that the purchase price is likely higher then the price you bought it for just prior.
John
Quote:
On 2004-06-26 00:07, elago3 wrote:
I currently live in a house that I lease optioned from the owner. I've been here for 3 months and someone offered to buy my house. So my question is, what steps and paper work do I need to do a double closing? Where do I start? Thanks in advance for any advice. From a real Amateur.
[addsig]
John,
How do you get your cut or profit by assigning the L/O. Thanks.
there would be seasoning because the new lender of the buyer would think that by doing a double closing that you somehow "inflated" the price of the property and that is the buyer defaults they will be stuck with a house that is not worth what they paid for it. so a way around this would be to A. find a lender that does not care about seasoning or B. prove that it is worth what it is (paint it, fix it, show comps). Hope this helps, Ryan
you could always just buy it, then sell it if the owner is too opposed to letting you do it.
Could you not just get it contracted, then go to your bank, hard money lender, relatives, etc. and get a short term loan against the contract / your personal gurantee??
If the deal falls through you'd be out a litle interest money for a month or two.
You have to be careful to either assign the lease option or do a simultaneous closing or you might end up having excise tax due twice.
Go to a couple of title companies and ask if they do a simultaneous closing ro for a reference to one who does. Seasoning should not be an issue. Additionally your option should be assignable and you could just sell your option to the buyer or record a second etc. against the property that would be settled at closing depending on how the property is titled..
Tlak to an investor in your area at your club, one of them will steer you in the right direction.
[addsig]
Hello,
I would look closely at your LO contract which, if it doesn't, should state that you have the right to assign the contract to another buyer.
If your contract doesn' t say that, put it in on the next deal.
Thanks :-D ,
OTW
All Contracts are assignable unless they specifically state that they are not. Mine mention assignability, just because I believe in full disclosure. Hope that helps.