Before you bid at Tax Deed sales, foreclosure auctions, or make purchases at wholesale transactions, call one of our in-house counsel for a quick search. With a quick search you will have a better general idea of the liens and other encumbrances that may have to be cleared before you re-sell. A quick search is not an attorney opinion nor a comprehensive 30 year search, but it can assist you in determining the price of your bid, the title issues that the property will face, and the time you will invest in getting marketable title.
Wholesale Investors – The Closing Process
Whitworth understands that for investors time is of the essence. We can close your A-B then B-C transactions the same business day, as approved by the title insurance underwriter. All wholesale transactions require two closings, two title insurance owner’s policies, and two deeds.
Traditionally, wholesale transactions will require B to fund A, and then C to fund B. However, for some cash only transactions, the underwriter may approve funding A transactions with C funds. In those pre-approved transactions, all documents and funds will be held in escrow until all of the closing and purchase funds are in the title company’s escrow account and all of the A-B/B-C documents are fully executed and provided to the escrow agent.
At a minimum, the underwriter will require disclosure to A of the source of the closing funds. After receipt of all documents and funds, the funds will be disbursed to the parties in accordance with the closing statements.
Whitworth will be holding the first Investor Seminar of 2019 in April. Our in-house attorneys will discuss some of the most common questions investors have regarding real estate closings, title issues, and market trends. Registration forms will be available in February of 2019. We look forward to helping your real estate business grow.