Successful Short Sale Closing: Seasoning Issues - No Problem!

By Author: Jodi Funke
Total Articles: 8
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Lender seasoning requirements have created road blocks for many real estate investors involved in double closing transactions. Seasoning requirements are restrictions placed on real property requiring ownership of 6-12 months before it can be sold. This is a turn-off for lenders; they may not want to fund the second part of a double closing because they are concerned with seasoning issues.
There are ways around seasoning requirements; however, real estate investors need to be aware that some creative financing techniques are illegal.
One way around seasoning issues is to assign your interest in the purchase agreement to the buyer for a fee, keeping the seller as the current owner. The drawback to this option is that the buyer must be able to pay the assignment fee without using proceeds from the final closing.
There are a number of other techniques that real estate professionals are using to make the process of investing in foreclosures, short sales and distressed real estate smoother.
Real estate investors who are practicing short sales, double closings and other specialized techniques ...
... should be represented by a qualified real estate attorney who understands how these transactions work. A real estate attorney will know how to structure all documents in a double closing to comply with mortgage guidelines.
Jodi Funke is a transactional lender who specializes in real estate short sales and the resale of property purchased on a short sale. She has built a nationwide network of attorneys, real estate professionals and title companies who are experts in short sale transactions and back-to-back closings. Visit http://www.cashforshortsales.com a company who provides one-day funding to the investor who is buying the property on a short sale