Double closing issues

[Jerryll Noorden]

Hello all.

I am having a really hard time with my escrow company getting a double close done.

They say that they need some release from the cash buyer giving them authority to let me use their money to "buy" the property. They say it is illegal to do it any other way.

The way I understood this whole doubleclose thing was you open 2 escrows.  Seller - wholesaler and wholesaler - cash buyer.

Cash buyer deposits the funds in the second escrow. 

The second escrow funds the first escrow and seller receives the money. and first escrow closes.

Remainder of the money goes to me and the second escrow closes.

My escrow company is throwing a fit about having the cash buyer being required to write a release for me to get this deal done.

Can anyone shine some light on this? Also if anyone has an escrow company that knows how to do double closes can you please share with me?

Time really is running out for me on this deal.

Thank you.

[Shannon Wright]

In most states, the C-A closing is not able to be done for either legal reasons or insuring reasons. In Ca it is not insurable, so both B and C have to fully fund independently. There cannot be a co-mingling of money between the transactions, which is why they want a release from C to pay A.