Transactional Funding even sounds scary, like ghost second or gifts of equity (which I don't do either)  Eric, you said "he has to do back to back closings.  2 in a row instead of 1 simultaneous and each closing has to stand on it's own"   ????? Isn't that the way all transactions should be????  Each should be able to stand on their own and at arms length!  Right??? 

And who is They????  If they refer to the B-C transaction then I think you have answered the question for yourself. While I haven't read all the comments yet it sounds super fishy to me and I wouldn't touch it with a ten foot pole.  Run away, run away I say. 

These are the sort of deals that land one in jail for fraud.  If you know that B-C can not "fund" the  A-B transaction then how is it possible that the title company can step in and accept money from the "they" in the B-C transaction to apply toward A-B and then repay it back to "they" who I assume is part of B-C transaction later.  This is nothing more than the run around the at the goal line  looking for the hole to squeek thru. 

As a title agent I would not involve myself in such a venture.  We are the last line of defense in this business and our credibility suffers greatly when Agents are willing to take on such things.  All fraud (ok, maybe not all but a real good protion of it) in this business could have been prevented by the Title Agents that are willing to stand up for the law and what the law represents.