U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
Old 12-06-2010, 11:51 AM
1 posts, read 642 times
Reputation: 10


What it sounds like is REEEALLY happening is this listing broker or investor is doing whats commonly happening here in California. Listing broker/Investor has contracted with the homeowner on a distressed home still in default (he doesnt pay to make them current, hed be a fool to..) and buys the home subject to bank approval. After contracting with the homeowner he negotiates with the bank for an approval price. Once achieved he locates and contracts with a buyer like yourself and sells just above the approved price. He reduces all his risk by doing a double closing with either one or two escrows. Once he has you in contract, he will execute on his part and usually transfer title to himself just moments before re-selling to you at an amount over bank approval = his profit. Its a reassuring way to reduce risk for an investor, knowing how much your profit is and being able to cash out on your investment before or as your money is invested, rather than buying a house then listing and hoping you attract a buyer whom will allow you to make a profit. Its called an A-B-C transaction, B buys from A and sells to C all in the same "transaction" or escrow. In regards to the FHA flip rule, i also heard as of Feb theyve waived the restriction but you may want to verify.

Rate this post positively Reply With Quote Quick reply to this message

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top