Simultaneous Closings - If a buyer has a down payment, and can support the monthly payments for a property (directly and/or through rents), but cannot for whatever reason qualify for a bank loan, and a seller does not wish to carry-back and subsequently collect the payments over time on a private mortgage note (and bear the risk of a default), then a (technically, an "almost") Simultaneous Closing can satisfy the needs of both parties.

It works this way: Prior to setting up the closing, the seller and the buyer agree on the terms of the deal, including the agreement by the seller to take a private note (normally one with a "balloon") for the balance of the purchase price.

The seller and the funding source separately agree that the source will make a full purchase of the seller's private note, just after the purchase is finalized (usually within three days after the closing). In this interval, the elements of the closing  are verified by the funding source. Then the source buys the private note from the seller (wiring the money to the seller's account); the buyer now makes payments on the private note to the funding source. The seller has cash for the sale, and has nothing further to do with the private  note. The buyer now has the the time until  the balloon payment to make steady payments, improving his credit, and then be able to arrange to refinance the private balloon note, or to sell the property, hopefully at a nice profit.

As a bonus, there are no bank mortgage points and bank attorney's fees to be paid, and the closing and processing fees for recording the deed and the like are minimal. Plus, if the deal is completely private (FSBO or sale-by-owner), there is no 6%-or-so realtor fee.

One of our note specialists will be delighted to work with you to arrange a note purchase that suits your personal situation.

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