Short sales require 60 day period between title closings in NY State?

[Michael G.]

Here's the challenge: I have a few cash buyers in place ready to go on 2 short sale deals in my pipeline.

Yesterday , my attorney says that she thinks there is going to be an issue with double closing on these as there is a NEW law passed in NY State that says there must be a 60 day period between closings or something like this. We are supposed to talk today so I can get full clarification. Apparently the banks are catching on to flippers making profits on short sales and are trying to put the kabash on any proft being made from the immediate buying and selling of the property for a profit. I guess if there is a profit to be made the bank wants it on their books.

Anyway the attorney says that the title company that she uses said they will not provide title insurance for my double closing scenario. She said she could try some other title company but that it may be risky. This all means that both my pipeline short sale deals could blow up as my exit strategy was to double close with a rehab investor.

I'm thinking either do the flip myself (not what I intended but the profit potential is very attractive to me) or some how JV with one of the cash buyers on the deals?

I was also thinking if a) transactional funding lasts for 60 days it would put me right where I need to be. b) If I had a private money source I would also be in a good place to flip it to a rehab buyer after the elapsed 60 day period and just pay a nice chunk of interest for the use of the money.

Either way. I gotta do something and I need feedback.

This is sort of a hybrid issue about financing/wholesaling and short sales so apologies if I posted in the wrong forum. - Mike