Short sale double closings update

By
Real Estate Agent with Sand Dollar Realty Group, Inc. BK627826

Our Florida Realtors' magazine in March wrote an interesting article about short sale double closing transactions.  Check out the article here: Short Sales - Flips that may Flop.

foreclosure signThe article is written from the Realtor's point of view and not from an investor's as I did in my blog series last Fall on Short Sales and Double Closings - the Good, the Bad, and the Ugly. The article points out that these deals can have many many extra bumps in the road compared to a normal deal. 

Many retail mortgages require the seller to have been in title for a minimum 90 days and up to a year.  FHA temporarily lifted their 90 day seasoning requirement in February, but still prohibits loans to close if their has been a history of flipping.  

As I stated repeatedly in my article, this Florida Realtors magazine article also states that if there is fraud in the deal that the short saling lender can unwind the whole transaction. Also keep in mind that as a Realtor, you cannot give the seller legal advice. And in a non-standard short sale transaction the seller is in even more of a questionable situation.  Not only is the seller potentially getting their credit damaged because of the short sale or foreclosure, but also there is the potential for the short saling lender to come back on the deal if there was fraud, undisclosed money changing hands, or a non-arm's length transaction.

I spent last Fall writing my version of War & Peace on this subject, so I'm not going to do that here.  Check out the Florida Realtors' magazine article and keep your short sale flip deals on the up and up.

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Topic:
Home Selling
Location:
Florida
Groups:
Realtors®
Short Sales
Short Sales and Forclosures ONLY
Short Sale REALTORS®
Florida Real Estate Investors
Tags:
short sale flips
short sale double closings
short sale back to back closings

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Rainmaker
117,321
Beth Ruggeri
Watson Realty - Saint Augustine, FL

Thanks, I just received mine and will check out the article.

Mar 06, 2010 01:09 AM #1
Rainmaker
1,014,819
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I have not had or done a short sale flip.  I will have to read the article to get the full understanding of what you are talking about.

Mar 06, 2010 01:15 AM #2
Ambassador
1,187,795
Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (800) 591-6121

I neither have done a short sale flip yet.

But I do have an investor that I have started working with who is interested in my listings, so there is a possibility of some in the near future.

Mar 06, 2010 01:17 AM #3
Rainmaker
160,184
Ray Wright
Keller Williams Realty - Riverside, CA
SoCal Realtor - A.L.C.

Thanks for posting!  Never had one before but I expect that I will soon.  I appreciate the info.

Mar 06, 2010 05:17 PM #4
Rainer
237,052
Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

Never done one. I work with First American Titile exclusively and when I asked about a double closing or even the "24 hour" double closing, they said absolutely not.

Mar 08, 2010 02:32 AM #5
Rainmaker
1,017,021
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Jeffrey - You need to shop around for a company that is a little more creative. I've personally been involved with over 100 double closings and many of those just in the last few years.  Companies like First American won't do them.  But many attorney owned title companies will do them all the time.

Mar 08, 2010 02:42 AM #6
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Rainmaker
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Rob Arnold

Metro Orlando Full Service - Investor Friendly & F
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