Question about transactional funding

[Timothy Bormuth]

First let me say this is a great sit Im glad I joined.Now to the question

If the end buyer signs a contract with me for a property then backs out lets say a week before closing am I still responsible to buy the property from the seller?

Anyway started on my buyers list.
Take care have a great day
TIM :D

[Jon Holdman]

If you're end buyer backs out, a transactional funder will not provide the money. They will require you have the end buyer in place.

If you do lose your buyer, and can't come up with another, the worst that will happen is that you lose your earnest money. If you're dealing with REOs or short sales, you're also going to be on that bank or listing agent's "don't trust this guy" list.

That assumes you've marked "liquidated damages" on the sales contract and not "specific performance". If specific performance is in the contract, then, yes, you have to purchase the property and the seller can sue you to force the sale. Just be sure to specify liquidated damages.