Closing & Funding Short Sale Deals With Transactional Funding
With the credit crunch, mortgage fraud, and tighter restrictions, closing short sales isn’t as easy as it used to be.
(EMAILWIRE.COM, October 14, 2008 ) Blaine, WA - In the past, plenty of hard money options, along with double and simultaneous closings made closing short sales a breeze. Presently, with the credit crunch, mortgage fraud, and tighter restrictions with lenders and title companies, closing short sales isn’t as easy as it used to be.
However, there is still one very simple and easy way to close your short sale transactions without using double closings, hard money, simultaneous closings, or even the over complex land trusts.
That method is using back-to-back closings to get all of your short sale deals closed and funded on time. Back-to-back closings takes a short sale deal and turns it into two separate transactions. In the first transaction, the homeowner sells the pre-foreclosure to the investor. In the second transaction, the real estate investor sells the property to a retail buyer.
Even if you are using the back-to-back closing method, you, as the investor, need to secure your own funding.
Funding for this type of transaction is called transactional funding. Lenders love transactional funding since they are only lending for a few hours.
The end buyer purchases the property with funds obtained through traditional lending, or cash. Most conventional lenders won’t have an issue with funding these loans. However, FHA loans have a 90 day seasoning requirement.
Transactional funding is the perfect way for pre-foreclosure investors to fund their short sale deals in today’s market.
About The Short Sale Formula:
The Short Sale Formula provides a step-by-stop formula to show real estate investors how to put together a short sale packet, outsource short sale files, conduct back-to-back closings, and finance short sales once they are complete. The Short Sale Formula is owned and operated by SaveMeFromForeclosure.com, LLC.
However, there is still one very simple and easy way to close your short sale transactions without using double closings, hard money, simultaneous closings, or even the over complex land trusts.
That method is using back-to-back closings to get all of your short sale deals closed and funded on time. Back-to-back closings takes a short sale deal and turns it into two separate transactions. In the first transaction, the homeowner sells the pre-foreclosure to the investor. In the second transaction, the real estate investor sells the property to a retail buyer.
Even if you are using the back-to-back closing method, you, as the investor, need to secure your own funding.
Funding for this type of transaction is called transactional funding. Lenders love transactional funding since they are only lending for a few hours.
The end buyer purchases the property with funds obtained through traditional lending, or cash. Most conventional lenders won’t have an issue with funding these loans. However, FHA loans have a 90 day seasoning requirement.
Transactional funding is the perfect way for pre-foreclosure investors to fund their short sale deals in today’s market.
About The Short Sale Formula:
The Short Sale Formula provides a step-by-stop formula to show real estate investors how to put together a short sale packet, outsource short sale files, conduct back-to-back closings, and finance short sales once they are complete. The Short Sale Formula is owned and operated by SaveMeFromForeclosure.com, LLC.
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