| The first closing will be between the homeowner in default and our company. There will be a clear title when our company conveys title to the end buyer. There will then be a second closing, on the same day, where we sell the property to the end-buyer found by the Realtor.
The end buyer cannot use a FHA or VA loan, or any other funding source that has seasoning limitations.
On the first closing between the homeowner in default and us, we pay all judgments, liens, outstanding mortgages and anything else encumbering the title. That is why we cannot afford to pay any closing costs on the second closing between my company and the end buyer.
What is paid in closing costs and fees on the first closing between the homeowners in default and us is not usual and customary. We are paying fees not usually paid by a buyer.
We pay it all. The homeowner in default will pay nothing.
We also paid for the costs associated with negotiating the short discount (attorney's fees) and excessively high private loan fees to fund the first closing. We likely incurred fees to make the short sale happen and they are very extensive.
The homeowners in default will show up to all closings between them and us. It is a little different on these short sale deals but remember the end buyer will still be getting a great deal on the property.
The end Buyer will pay current taxes for the existing year and all closing costs and fees associated with the closing between us and the End Buyer. There will be no pro-ration of taxes.
We will pay all Realtor commissions, as well as back taxes.
We will use a Title Company we work with to close all short sale transactions because they are familiar, and experts with closing short sale back-to-back transactions successfully and without stress.
They do nationwide closings and stay current on all new laws and changes with short sale closings.
Our title company is owned by attorneys, and guarantees all parties get paid, including the Agents listing and selling the property |
