Title Insurance On Short Sale Double Close
I have an approved short sale (1st midland,2nd saxon) on a 3 unit at 74k. I also have a willing and able investor to be the end buyer at 110k.
My question is about title insurance. I just spoke to an attorney who said because this is a short sale I will have trouble getting title insurance until the discharge from the first lender (lender being short) is filed (2 weeks -month). Then I should be good to close to end buyer.
Can I get both closings done in one day? Do I need to speak to another attorney? If you could fill me in I would greatly appreciate it.
Title insurers are being cautious about issuing title insurance when a simultaneous close is involved. Many simply refuse to do it in the fallout from all the mortgage fraud cases in the past couple of years.
Title insurers are being cautious about issuing title insurance when a simultaneous close is involved. Many simply refuse to do it in the fallout from all the mortgage fraud cases in the past couple of years.
Use two Title Companies; one to buy and one to sell.
Will this work in CA?
Will this work in CA?
Quote:
On 2010-02-25 21:28, loasolutions wrote:
Use two Title Companies; one to buy and one to sell.
Why would it matter if you use one to buy or not? It is your end purchasers title co that raises the issue of fraud.
Thank you for the quick reply and great advice. I will take all of your points into consideration when coming up with my offer price. I am planning on getting on the phone with the borrower and Wells Fargo tomorrow.
Best,
Dan
Thank you for the tip. I have verified funds from an all cash buyer, so the buyer solid (unless he backs out last minute, but I have worked with him before and he has always performed). I have full buy-in from the seller. Now it is a matter of negotiating with Wells Fargo.
The CMV of the property is equal to the amount owed on the property if the property were in decent condition. Fortunately, she has termite reports and an inspection report from a year ago when she tried to sell. In those reports, there are several issues that will bring the value of the property down. Termite damage and a foundation issue are the biggest issues. Nothing has been done to fix these issues. Will Wells take these fix up costs into consideration when negotiating price?
Thanks again,
Dan
Hi,
Thank you for the tips. I am a wholesaler and stumbled on to this short sale opportunity. Wells has "reopened" the file now that I have the updated inspections. There is substantial work that needs to be done. The foundation is a mess and the estimate came in at $90K. It brought the lender back to the negotiation table. Now, I would like to see if I can lower my offer price given the amount of repairs the property needs.
Thanks again,
Dan
Did you have to file power of attorney from the seller to talk to wells fargo ?