OfflineCan anyone tell me if you use a transactional funding company to double close with your A buyer, and C buyer decides not to close at the last minute, do you still owe the transactional funding company and therefore loose money on the deal? Thanks, Tammy
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The TF provider will not wire the funds to cover the A closing(with your seller) until the B closes (with your buyer). OR the B buyers money is in escrow first. These TF funders don't wire money unless the B closing is a sure thing. If the buyer backs out you lose your earnest money on the A closing. Actually, you won't really lose anything since your buyers earnest(on the B closing) should be more that your earnest money (on the A closing).
No real cash buyer is going to put up a non refundable earnest money deposit and then back out. Of course I don't allow my buyer to put up some ridiculous earnest money amount like $10. I usually require at least $2500 non refundable earnest. If they are REAL cash buyers, the earnest money amount is really irrelevant.
Tammy, I would ask if you actually have............Oh, never mind.
Tammy, Don't you have access to this info being a IE..........Oh, never mind.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
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Transactional funding company will make sure end buyer is a sure thing before they release the funds.
Also, if you have non-refundable EM from end buyer, why would he back out at the last minute?
Do you actually have a deal like this right now, or is this a hypothetical question?
Valerie
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I understand your fear and concern but it won't happen. Transactional funding companies are structured to prevent that from happening. They will collect the funds from your end Buyer before anything else can happen.
Call the transactional funding company and walk through it with them
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