Customer Don P. wrote to us recently about a predicament he was in. Don was in the not uncommon position of having scheduled the closings for the sale of his current home and the purchase of his new home on the same day. Sounds scary, right? Don needed the funds from his sale to use toward his purchase; and since the closings were scheduled on the same day, he was rightfully concerned about how to get his cash from us to the company handling the purchase. Here’s what we did for Don and some advice for those of you who may be faced with the same issue.
In Don’s case, we did the following to ensure that his funds could make it to the other title company:
- Yelped! We always yelp a little when we receive contracts that refer to another contract that’s closing on the same day. Can you blame us?
- Prayed for a cash buyer for Don’s property. Having a cash buyer significantly reduces the stress related to waiting for loan documents, the lender’s wire and their funding authorization.
- Scheduled Don’s closing as early as possible.
- Secured wiring instructions for the other title company.
- Got Don’s signed authorization for us to send a portion of his proceeds to the other title company.
- Requested and received a final HUD-1 settlement statement from the other title company so that we could send the exact amount required for Don’s purchase.
- Called the other title company to confirm that we had sent Don’s funds to them via wire transfer.
Don’s deals luckily went like clockwork. Unfortunately, they don’t always work out like that. Here are a few pointers if you are stuck having to close a sale and a purchase on the same day:
