But back-to-back closings are certainly the cheaper way to do the closing, but it’s not the only way. The big thing to remember about holding onto the house for a month is that you have an exit strategy so you’re not going to get stuck with the property.
You could very well end up losing your house to foreclosure while you wait for that “best offer” that you “bring to the bank.”
If the property is the seller’s primary residence, debt forgiveness income will not be considered taxable income up to the amount of the purchase money mortgage.
Like I’ve said before, so many lawyers (and other real estate professionals) simply DON’T UNDERSTAND Short Sales, so their knee-jerk reaction is to advise against them, even when the Short Sale would save the homeowner from a disastrous foreclosure.
Teaching Short Sale investors how to structure their transactions in a 100% ethical and legal way is something I do at my Breakthtrough live events.
You say that failure to disclose the higher bidder to the lender would cause you to advise against moving forward with the transaction. I would suggest you’ve forgotten some basics.
at Breakthrough we help you identify the right professionals to put on your team in the first place – how to find attorneys and title companies that understand what you are doing and can help you do it correctly.
Using an end-buyer’s lender’s money to fund the investor’s acquisition of the original seller is not a common practice today and is something I always strongly caution against.
It’s not uncommon that I hear of an investor or homeowner who receives advice from their lawyer not to do a short sale.
