Perhaps it didn't hit me at first a few days ago, I was speaking to a fellow colleague, another Phoenix Loan Officer like myself and she was saying that she was doing work in her own words a "contingency chain". I asked her to shed some light on this and she explained this in a nutshell. Client "A" is investing in Consumer "B's" home but should market his house first, buyer "B" is purchasing customer "C's" property but should close on the sale of his home to Buyer "A", buyer "C" is purchasing client "D's" property but must close on the sale of his home to Consumer "B."
So if you happen to be like me you will have to go back and re read this specific sentence a couple times to fully understand it. In this situation my fellow loan officer friend is doing the loans for most of these dealings, and she said that this was the most reliable approach of doing the contingent on sale type transactions. She could make sure that she can dig in and be sure there was not going to be any snags on the financing for ANY of the borrowers, because if somebody was to drop the ball on one of the loans the whole thing might possibly falter.
I am not entirely very sure, but something should be going on in our market as I moved back to my desk to evaluate our current deals and we have Two of the same kind of transactions, not necessarily that several contingent on sale deals together but we have 2 separate consumers who have decided "hey, we could make some money on our house which we purchased a couple years ago, why don't you roll that into a new purchase". What an awesome principle correct?
Here is where the deal can get a bit tricky.... It's perfect that you ensure WELL ahead of time that your phoenix loan officer can perform with all the prospective problems you can have. By having this conversation well ahead of time, you could ensure that you'll not end up homeless for a couple of days. When the cash to close or the cash that it requires to close the new investment come from the sale of your own recent house you may experience a snag with your present loan provider. I say you MAY mainly because all loan providers are a little bit different... Mainly because that cash to close isn't yet in your account you will be smart to have your Phoenix Loan Officer talk with their insurance underwriter on whether they will accept an expected HUD with a sales agreement of the home you are selling and enable you to obtain files to the title business on your new purchase.
From here, it is right that you deal with the same title enterprise on the sale of your home and also the acquisition of the new property that way you don't need to bother about the wire from the sale taking a too long to go to another title company for your investment, which can develop a serious mess. This is something your real estate agent must help you coordinate, if you don't have a great broker to coordinate a negotiate speak to me now and I can get you introduced to a few leading agents who've a success rate with these types of purchases, your real estate staff MATTERS.
Again, contingent on sale deals need a bit more competence, in case you think your loan officer has difficulties with yours I am here to assist you understand and coach them through it.
So if you happen to be like me you will have to go back and re read this specific sentence a couple times to fully understand it. In this situation my fellow loan officer friend is doing the loans for most of these dealings, and she said that this was the most reliable approach of doing the contingent on sale type transactions. She could make sure that she can dig in and be sure there was not going to be any snags on the financing for ANY of the borrowers, because if somebody was to drop the ball on one of the loans the whole thing might possibly falter.
I am not entirely very sure, but something should be going on in our market as I moved back to my desk to evaluate our current deals and we have Two of the same kind of transactions, not necessarily that several contingent on sale deals together but we have 2 separate consumers who have decided "hey, we could make some money on our house which we purchased a couple years ago, why don't you roll that into a new purchase". What an awesome principle correct?
Here is where the deal can get a bit tricky.... It's perfect that you ensure WELL ahead of time that your phoenix loan officer can perform with all the prospective problems you can have. By having this conversation well ahead of time, you could ensure that you'll not end up homeless for a couple of days. When the cash to close or the cash that it requires to close the new investment come from the sale of your own recent house you may experience a snag with your present loan provider. I say you MAY mainly because all loan providers are a little bit different... Mainly because that cash to close isn't yet in your account you will be smart to have your Phoenix Loan Officer talk with their insurance underwriter on whether they will accept an expected HUD with a sales agreement of the home you are selling and enable you to obtain files to the title business on your new purchase.
From here, it is right that you deal with the same title enterprise on the sale of your home and also the acquisition of the new property that way you don't need to bother about the wire from the sale taking a too long to go to another title company for your investment, which can develop a serious mess. This is something your real estate agent must help you coordinate, if you don't have a great broker to coordinate a negotiate speak to me now and I can get you introduced to a few leading agents who've a success rate with these types of purchases, your real estate staff MATTERS.
Again, contingent on sale deals need a bit more competence, in case you think your loan officer has difficulties with yours I am here to assist you understand and coach them through it.
About the Author:
Make sure you go to this site www.electricloanofficer.com or contact Justin Haines if you'd like more information about contingent on sale.
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