Financing and Closing Short Sale Deals With Transactional funding

If you're a preforeclosure investor, with credit markets tightening, you may have noticed the more difficult these days to close short sale deals. In the past, many hard money options, with double closings and simultaneous closings in closing short sales a breeze. However, with the credit crisis, mortgage fraud, and tighter restrictions with lenders and title companies, closing short sales is not as easy as in the past.

However, there is still a very simple and easy to close shortsale transactions without the use of closures double, hard money, the simultaneous closing, or even trusts for the earth complex.

This method uses back-to-back closings to get all your short sale deals closed and funded on time. Back to back closings take a deal and turn it into two separate and distinct operations. The first transaction is the homeowner facing foreclosure selling to the preforeclosure investor. The second operation is the real estate investor then selling the property to the buyer to the final detail.

However, even if you use a back to back closing, and your end retail buyer has secured their funds, what makes this work is that it is necessary to ensure its own funds, because the real estate investor.

So where do you get this funding of your deals? This is often called transactional funding, and today, there are many lenders who make these types of loans. Lenders love transactional funding, because they are only borrowed for a period of hours.

With the end buyer's loan already approved and in effect, two separate and distinct operations take place on closing day. The first is the investor purchasing the short sale deal from the house in distress. This is funded by the transactional funding company. Immediately after this transaction has closed, the investor is then turning around and immediately sell the property to the end buyer.

The final buyer is using funds obtained by him through a traditional loan, or cash. Most conventional lenders today will have no problem funding these loans. The only exception is where FHA loans, which at the time of this writing, have requirement of 90 days of curing. However, as changes in the housing market and the housing market remains volatile, it is very possible that the FHA might change its guidelines.

Transactional funding is the perfect way for preforeclosure investors to fund their bids shortsale foreclosure ridden market today. There are many choices for a finance company, all willing to finance these operations simple, easy short sale .......