What is a simultaneous closure?

Concomitant closure is an event that sometimes takes place in real estate transactions. This process requires the real estate dealer to have a mortgage remark for this property, and then sold the note at the same time as the real estate is closed. The final result is that the note and sale of the property are settled or closed at the same time, and the note is sold within about 10 days of the sale. This process brings potential benefits and some obligations that must be carefully considered before creating this type of financial arrangement.

In order to create a viable structure for simultaneous closure, it is important to determine several criteria. The real market value of the property offered for sale is crucial because it will be among the data that the creditor will take into account for the mortgage remark. In addition, a complete description of the property, recording equipment, or functions that help add to this real market value, witaké be useful. As the last key information in creating the sumThe owner must determine how much profit he wants to obtain as a result of the arrangement.

With all the necessary information in hand, the owner can cooperate with the creditor to create the required mortgage and be able to work with qualified buyers to achieve sales. Once the offer is to allow the owner to achieve the required profit from the sale, and the creditor holding a mortgage note is approved by the buyer, the sale can be closed. Over the next 10 days, the seller sells a mortgage remark to a credit institution or other third party, which will then cooperate with the buyers to comply with the note according to the payment terms. This situation will continue for the duration of the note if the buyers are satisfied with the repayment conditions or can be settled soon if they decide to refinance the debt using the creditor of their own choice. In any case, simultaneousThe conclusion allows the seller to conclude both components of the agreement and is no longer part of the arrangement.

While the approach of current closure may be beneficial for all parties in question, there is a certain potential disadvantage of this type of real estate strategy. Since the original owner of the property interacts with the buyer as the seller and the creditor, it is necessary to ensure that the buyer can qualify for financing when sellers sell the loan back to the provider or some other third party. This means that it is important to qualify the buyer before consent to the sale. If you do not do so, it can create a situation in which the seller remains a creditor in terms of mortgages and must honor this obligation by regular debt payments, usually the use of installments provided to the buyer. If the owner is not willing to stay in this situation for many years, it is necessary time to qualify the buyer.