Why is SIMULTANEOUS CLOSINGS disallowed??!

[Thomas K]

Hi,

I've heard a lot from attorneys/investors/title company that they don't do Simultaneous closings won't work anymore (this is for REOs only)? Is it true?? Simultaneous closings I mean using C's money to close AB transactions, full disclosure with C, of course. I also buy my own title policy to protect my buyer, and I don't bring any money to the table. Title or attorney will be in charge of disbursing C's funds to the bank, and the finder's fee for me.

Why is simultaneous closings disallowed (I'm in NY, NJ, CT)? I've read also read a lot of people who are actively doing simultaneous closings in their own states, here on BP.

Can someone explain to me how and why this is happening? Were there any cases where people have gotten into serious trouble with this?

Any help is appreciated! Thanks!