Closing Options?
I have a house under contract with a homeowner and am just about finished negotiating with the bank. It looks like we'll be paying $90K for the house. I have an end buyer who wants to buy the house with a conventional loan. She's going to be paying $117.5K.
Initially, I had the end buyer working with a lender who was aware of the whole situation, and who would not have an issue with title seasoning. Now, she's decided to work with another lender, and I haven't been able to speak with them to see if they understand the whole situation, and make sure everything will work out as far as the title seasoning goes.
I was planning on paying cash (hard money) for the house, and then closing shortly thereafter with the end buyer.
I've heard of double/simultaneous closings being used, but can't quite visualize how that will work with a short sale from the bank. Does anyone know of any strategies I might consider, that would address the title seasoning issue and maybe even keep me from having to pay the cash first?
Thanks!
[quote]
On 2004-04-20 00:38, cyoung35 wrote:
In the case of a purchase the banks will not even consider title seasoning to be a factor. Title seasoning is mainly looked at for refi's. If you are selling the house you first have to own it...therfore you have to be recorded on title and then transfer the title at the close of the buyers escrow. I hope this helped.
Chad Young
<font size=-1>[ Edited by cyoung35 on Date 04/20/2004 ]</font>
Good Things come to those who wait...but only the things left over by the people that hustle.
Title seasoning is a deal killer for FHA and many non-conventional loans. If the loan follows the Fannie Mae or Freddy Mac guidelines you are OK.
If you have a savy lawyer for the close, he will let you fund the first close with the money from the second close. You have a dry first close, meaning all the papers are signed but the cashiers check to the bank is not cut. Then you have your second close. The bank pays the money, it goes into the lawyer's escrow and he then funds the first close.
It is not always wise to broadcast this to the lender in the second close.
Brenda