Last week I began my point-by-point response to a letter I received. The letter was written by a lawyer advising her client, a homeowner facing foreclosure, against entering into a Short Sale deal with an investor. (You can read the full letter here.)
Here’s the fifth excerpt from the attorney’s letter (and my response):
5. The title insurance company through which our firm issues insurance has made a business decision not to insure these types of transactions.
Ms. Attorney, yes, I would agree that you should NOT close a transaction where the investor’s purchase money is coming from the investor’s buyer’s lender and I agree with you that most title insurance companies will not insure such a transaction.
This is why at Short Sale Breakthrough 09 we spend an entire session on closings and closing logistics to help real estate professionals structure deals that satisfy title underwriting standards. On this point the attorney is absolutely correct. But remember that a successful deal comes from knowing what issues to not fight head on but rather arrive prepared with alternatives. If you structure your deals appropriately going in – you won’t be surprised when you get an objection like this.
Our Closing Workshop at Breakthrough shows investors how to set things up correctly going in, how to fund your transactions, and six (6) ways to address “the seasoning issue.” Most importantly, 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.
P.S. I keep mentioning Short Sale Breakthrough 09 because it’s happening in only 14 days and I want you to join me in Orlando, Florida!
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