I just spoke with one of our local Title Companies. She said you have to provide full disclosure to all parties if you're doing a double close.(not sure how I would do that either) She said the banks are watching these very carefully and suspect fraud when you double close for a profit, which doesn't make sense to me. Is this just in WI? When you buy a property for say $100,000 and then sell it 3 hours later for $110,000 the bank financing at the second closing knows it was just sold for $10,000 more think it's a flip (so?)or fraudulent sale... Has anyone heard of this?
I wanted to do a double close because the prop is an REO and can't assign so I would fund with Costal Funding then sell to my end buyer to get the profit. I'm confused as to why the end buyer's bank would care if the end buyer is willing to buy at $10,000 more? I think I'm missing something here.
More confused than ever....
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