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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Try our two step close instead... Posted by Ward-CA- on February 09, 2004 at 9:10 AM In Reply to: Questions on closing techniques for preforeclosures posted by Karen on February 09, 2004 at 8:09 AM : Hello, : Since studying preforeclosures, I have had many people tell me what they believe is the best way to close on a transaction, and now I am confused. The best, so I have heard, is to do a "sandwich close" with the new buyer. I have talked with MANY title companies and lawyers in Indiana and they just don't do this anymore b/c of issues with loan fraud - even though we have been told that it isn't illegal. Others tell me to get a line of credit, close with the bank on the first side of the transaction, and then close on the other side w/ a new buyer. And still others say to use private money to fund the deal and then close with the new buyer. : The sandwich close appears to have the least amount of liability to me b/c it keeps me out of the chain of title and noone sees how much money I am making, but I have yet to find a title company that will do this, and I am anxious to get started. : Here are my questions: What closing technique(s) do most other investors who are regularly doing preforeclosures use to close out their transactions? I want to use (like everyone else I'm sure) the one that has the least amount of liability and at the same time is the easiest to close! The more complicated it gets with these title companies - the more likely that something will go wrong! : Thank you for your time and valuable input! : Karen ========================= Karen, The most successful equity buyout practitioners I've talked with here in CA utilize two separate transactions. The first transaction is buying the property from the defaulting owner utilizing an escrow and title insurance or not, depending how much time they have available before the impending foreclosure auction. Once the purchase transaction is closed and the ex-owner has moved out they rehab the vacant property and then resell it utilizing the two safeguards of escrow and title insurance with the new buyer. Seems to me our two step CA method would avoid the "sandwich close" and be as acceptable to your Indiana environment as it is here. Hope this helps. Follow Ups: Re: Try our two step close instead... Karen 12:12 AM, 02/09/04 (1) Equity buyout vs a lender buyout... Ward-CA- 7:52 AM, 02/11/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hello, : : Since studying preforeclosures, I have had many people tell me what they believe is the best way to close on a transaction, and now I am confused. The best, so I have heard, is to do a "sandwich close" with the new buyer. I have talked with MANY title companies and lawyers in Indiana and they just don't do this anymore b/c of issues with loan fraud - even though we have been told that it isn't illegal. Others tell me to get a line of credit, close with the bank on the first side of the transaction, and then close on the other side w/ a new buyer. And still others say to use private money to fund the deal and then close with the new buyer. : : The sandwich close appears to have the least amount of liability to me b/c it keeps me out of the chain of title and noone sees how much money I am making, but I have yet to find a title company that will do this, and I am anxious to get started. : : Here are my questions: What closing technique(s) do most other investors who are regularly doing preforeclosures use to close out their transactions? I want to use (like everyone else I'm sure) the one that has the least amount of liability and at the same time is the easiest to close! The more complicated it gets with these title companies - the more likely that something will go wrong! : : Thank you for your time and valuable input! : : Karen : ========================= : Karen, : The most successful equity buyout practitioners I've talked with here in CA utilize two separate transactions. The first transaction is buying the property from the defaulting owner utilizing an escrow and title insurance or not, depending how much time they have available before the impending foreclosure auction. : Once the purchase transaction is closed and the ex-owner has moved out they rehab the vacant property and then resell it utilizing the two safeguards of escrow and title insurance with the new buyer. : Seems to me our two step CA method would avoid the "sandwich close" and be as acceptable to your Indiana environment as it is here. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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