Wholesaling, Mortgages & Transactional funding

[Matthew T.]

I have a situation where I have 3 houses that I'm thinking of wholesaling to end buyers through a back to back closing BUT each house has an existing "mortgage" on them. Also, each house has a tenant who is paying the mortgage. What I want to know is can I obtain these homes under contract and use "transactional funding" to pay for these homes before I flip them to my end buyer? How can I work this out with the title company? Can I deal with just the owner or would I have to deal with the mortgage company? Any help in regards to this scenario would be GREAT appreciated! Thanks :)

[J Scott]

As long as the balance of the mortgage gets paid off at closing, the mortgage company doesn't care if the seller sells the property, and the mortgage company doesn't need to give permission (or even know about it).

In your scenario, the mortgage would be paid off during the first closing (with the transactional funds) and the second closing would be to sell the free and clear property to your end-buyer.