tdelo56 0 Report post Posted June 30, 2003 I've been listening to a lot of people saying the're having problems with the banks doing double closings, Has anybody experienced the same problems? And if so, how are you getting around this? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 30, 2003 Hello, td, and welcome to The Naked Investor.What sort or problems are you hearing about banks and double closings? Personally, I haven't had any. Share this post Link to post Share on other sites
Guest Guest_tdelo56 Report post Posted July 1, 2003 Hello, td, and welcome to The Naked Investor.What sort or problems are you hearing about banks and double closings? Personally, I haven't had any. That the bank will either limit you to 20% profit or make you season the loan for a year or 6 months.. Some just don't want to do them at all. I wonder if this is happening only in certain states! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 1, 2003 I don't think the scenario you describe is a state related matter. More like a lender driven concern.Personally, I've never heard of a lender telling me my profits must be limited to any amount. I'd like to see 'em try! Imagine if someone dictated to the bank how much profit they would be allowed to make! If this is happening to you, there are several options. Shop around for a different lender. Talk to a creative and well connected mortgage broker. Tell him/her what it is you are trying to do. They can probably assist you best of all. Share this post Link to post Share on other sites
tdelo56 0 Report post Posted July 1, 2003 Thanks Mike for the input. I noticed this on a couple of people on this forum. They were having these problems with the banks.... Share this post Link to post Share on other sites
brownpm 0 Report post Posted July 15, 2003 I've heard this topic quite frequently on other boards that I visit. The answer that I've heard on several occasions is the use of a document called a Performance Mortgage. This way you don't have to do a double-closing. You simply have the buyer & seller sitting at the closing table. Since you have a recorded Performance Mortgage against the property, the title/closing agency will call you to get the payoff amount, and forward you a check when it closes. Problem solved. Banks/Mortgage Companys and Underwriters are all trying to crack down on fraudulant flips, therefore they are tightening their guidelines around seasoning. The fact that many here have never heard of this issue is a surprise to me. Pat Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 15, 2003 Hi, Pat. The use of a Performance Mortgage is a good idea, more so for protecting one's position in a deal than to ease the transfer of title. How easily title is transferred in these double closings depends upon a number of factors, such as but not limited to how things like this are usually handled in a specific locale, how experienced the folks handling the paperwork are in these type deals, etc.For example, my present location in Florida is completely different and much more aggravating than was the way we did this type of deal in the wilds of New Mexico. If I was in the middle of a sandwich lease type arrangement there, I would sit at the closing table, sign a few papers, and be handed a check for my share of the profits. It was literally that simple. Now, here in the Sunshine State, I'm all but being fingerprinted and giving DNA samples to complete the same type deal. Go figure.......... Share this post Link to post Share on other sites
