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Old 12-06-2010, 11:51 AM
 
1 posts, read 642 times
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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.

Paul
[URL="http://www.TalkToMyRealtor.com"]www.TalkToMyRealtor.com[/URL]
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