They will charge points (perhaps you can negotiate 1-2, but that is paid for by the borrower, not you.Like Jon stated, you will have a deed of trust that will be executed and given to escrow, escrow will record your deed of trust (which will contain the vesting of your 401k plan) concurently with the purchase recording.

Since I am charging my buyer more than what the purchase contract is, I simply (as trustee) instruct escrow in teh escrow instructions that the intentional over funding of escrow proceeds are to be wired to my account (which is my wholesale fee).There are no transfers of beneficial interest to trigger transfer tax and the only thing that is done is that I as trustee resign and a substitution of trustee form and Grant Deed are executed (no tax, just small filing fee).

To me DD is should be done within X days of executed contract but BEFORE approval time, BUT I have to say that language is GENIOUS on the buyer side.

The original seller also execute a special warranty deed subject to the full payment under the CFD, but a new obligation would be much easier.Any way you do it, I'd first try to get the cooperation of the first seller to modify that CFD to a note and deed of trust or special security agreement/DOT.

Do you have an executed earnest money contract on the property?

This should take a couple weeks and the executive director will get a letter of inquiry or a phone call to motivate him/her.

A gift letter will be required to be executed.

What things can potentially cause a deal to go from pending to canceled between executing the effective date of the contract and closing?

They can also execute a General POA to sign any document with their name.

The defect list could be 20 pages long with an asset like this and the tactic just takes this all off the table as any further negotiation once the contract is executed.