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J&L in TX - LAWANDA  MCMILLIAN/AR
9/3/2009 9:34:26 PM (3265 views)

[+] Accepting Credit Cards - Dan Zook/NY (5 replies)
9/3/2009 1:07:29 PM (3893 views)

[-] Experience closing short sales w/transactional funding? - Eric Michaels/IL (21 replies)
9/3/2009 1:03:46 AM (4103 views)
Re: Experience closing short sales w/transactional funding? - Clanci Nelson/OH
9/10/2009 3:53:48 PM (5352 views)
Re: Experience closing short sales w/transactional funding? - CHARLENE  PERRY/MD
9/15/2009 2:24:40 PM (5356 views)
Re: Experience closing short sales w/transactional funding? - Eric Michaels/IL
9/17/2009 1:54:39 PM (6812 views)
Re: Experience closing short sales w/transactional funding? - Robert Franco/OH
9/17/2009 4:24:02 PM (5249 views)
Re: Experience closing short sales w/transactional funding? - CHARLENE  PERRY/MD
9/17/2009 7:58:09 PM (5358 views)
Re: Experience closing short sales w/transactional funding? - Eric Michaels/IL
9/18/2009 1:18:49 AM (5394 views)
Re: Experience closing short sales w/transactional funding? - Robert Franco/OH
9/18/2009 9:27:37 AM (5222 views)

It sounds to me like the "transactional funding" you describe is a "cute" way around the simultaneous closing problem.  As one of my law professors used to say "it's too cute by half."  If B cannot fund his purchase from A with money from the sale to C, why would it be okay for B to use your money for one day and pay it off with the proceeds from the sale to C?  In substance, it still looks like a land flip to me.

Lenders (such as C's) have been burned by land flips, which is why many of them do not permit back to back closings anymore. The fact that B uses your money for one day and then pays it off with the proceeds of the sale to C does not do anything to protect C or his lender from the dangers of land flips.

As you stated, "has become pretty mainstream in the past several months."  It is a pretty recent development, so I don't take much comfort in the fact that nobody has gone to jail over this yet.  In my mind, the same problems that ended up in federal investigations from simultaneous closings could happen with the "transactional funding" model you describe.  Many of those involved in simultaneous closings didn't see a problem with them initially, either. 

Because in substance, the transaction is the same, I would not close anything that resembled this type of deal.  Too risky from my perspective.  I'll stick to more traditional closings.

Best,
Robert A. Franco
SOURCE OF TITLE

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Re: Experience closing short sales w/transactional funding? - george Hubka/MI
9/18/2009 4:59:39 PM (5183 views)
Re: Experience closing short sales w/transactional funding? - Robert Franco/OH
9/18/2009 6:51:17 PM (5166 views)
Re: Experience closing short sales w/transactional funding? - george Hubka/MI
9/18/2009 8:57:45 PM (5216 views)
Re: Experience closing short sales w/transactional funding? - Eric Michaels/IL
9/19/2009 11:59:07 PM (5203 views)
Re: Experience closing short sales w/transactional funding? - Robert Franco/OH
9/21/2009 12:11:37 PM (5285 views)
Re: Experience closing short sales w/transactional funding? - Clanci Nelson/OH
9/21/2009 1:11:33 PM (5337 views)
Re: Experience closing short sales w/transactional funding? - Clanci Nelson/OH
9/21/2009 1:08:37 PM (5256 views)
Re: Experience closing short sales w/transactional funding? - Clanci Nelson/OH
9/21/2009 12:35:50 PM (5189 views)
Re: Experience closing short sales w/transactional funding? - Eric Michaels/IL
9/18/2009 1:24:49 AM (5239 views)
Re: Experience closing short sales w/transactional funding? - Clanci Nelson/OH
9/21/2009 1:50:13 PM (5263 views)
Re: Experience closing short sales w/transactional funding? - Robert Franco/OH
9/21/2009 2:08:51 PM (5476 views)
Re: Experience closing short sales w/transactional funding? - Eric Michaels/IL
9/22/2009 12:30:13 PM (5558 views)
Re: Experience closing short sales w/transactional funding? - Robert Franco/OH
9/22/2009 1:18:21 PM (5306 views)
Re: Experience closing short sales w/transactional funding? - Clanci Nelson/OH
10/12/2009 12:28:55 PM (5353 views)

[+] selling searches - edward hartung/OH (8 replies)
8/31/2009 11:04:12 PM (4322 views)

new client, trust title - WAYNE QUICK/NC
8/31/2009 6:54:42 PM (3842 views)




[+] Cleary Title - Robin Ramberg/MI (1 reply)
8/30/2009 8:32:56 PM (5126 views)

[+] Abstractor Fees - Tena Grice/TX (4 replies)
8/28/2009 11:40:47 PM (7265 views)

SOT maintenance notice - Slade Smith/OH
8/28/2009 1:45:08 PM (3412 views)

[+] Abstractor Watchdog - Nils Nelson/ME (3 replies)
8/27/2009 6:32:24 PM (4664 views)

[+] Service 1st Valuation and Settlement Services - VIVIAN SLYKER/OH (1 reply)
8/25/2009 3:16:23 PM (4772 views)

[+] Payment - Jana Urban-Buzek/OH (1 reply)
8/25/2009 12:15:50 PM (4416 views)

[+] Database Designed for Abstracting Companies - James Baker/AL (26 replies)
8/22/2009 10:18:57 PM (4627 views)

[+] Fico Scores - Jack Johanson/PA (2 replies)
8/21/2009 3:29:25 PM (4059 views)

[+] Mortgage Fraud the new target! - David Chisolm/MS (4 replies)
8/20/2009 2:51:56 PM (5315 views)

[+] A big 'thank you' to the OAITA! - Robert Franco/OH (3 replies)
8/20/2009 9:58:47 AM (5509 views)


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