Tempo Funding provides 100% loan to value funding specifically tailored to your Short Sale, REO, and other Back to Back closing needs.
These short-term deals are commonly referred to as ABC closings. A Double-Closing (or Back to Back Closing) Transaction is one in which you, the Investor (Party B), contract to purchase a property at one price from a Seller (Party A) and contract to sell the same property immediately to a qualified End Buyer (Party C) at a profit to yourself.
Tempo Funding provides 100% of the funds to close the A to B Transaction, or your purchase from the Seller. The diagram below depicts a sample transaction (in this case a short sale, however the same principles would apply to any other ABC deal) whereby all the relevant parties are depicted. Note that there are two distinct transactions (or legs of the deal) taking place, the “A to B” leg and the “B to C” leg.
Why do I need Tempo?
In today’s real estate environment, more and more Investors are finding that their ABC type deals are failing due to problems closing the B to C leg of their 3-party deals. In many cases, title insurance issues, state laws, or more stringent underwriting guidelines of the End Buyer’s lender are making it more and more difficult—if not impossible—to close your deals without bringing your own “wet funds” to the table to purchase the property from Party A and take full legal title before completing your sale to Party C.
Many Investors don’t have “wet funds” available or who do not want to use their own funds to close their A-B purchase. For these investors, there is Tempo. Tempo funds 100% of your purchase so that you can take title to the property and complete your sale to the end buyer without complications.
What does Tempo require? What is the funding process?
Tempo provides you with 100% of your funding needs for your A to B purchase transaction. Tempo makes funding decision is made based on your transaction, not based on your personal finances. Therefore, we need only the following documentation from you to set up your funding:
What we need from you:
- Amount of money you need to borrow
- Proof of your control or interest in the property: memorandum of trusts, notice of option or deed (as applicable)
- A to B Contract: first closing (where you are the buyer)
- B to C Contract: second closing (where you are the seller)
- Copy of the Short Sale Approval Acceptance Letter(s)
- A to B and B to C (estimated) HUD1 settlement statements
- Preliminary Title Report from Escrow/Title (Prelim) if available
- Closing Agent Location (name of closing agent, and contact information – e-mail & phone number)
- Closing Date
After receiving the above information, Tempo will contact your title company with closing instructions and to wire your purchase funds into the escrow account.
What does Tempo charge?
Tempo’s fees are simple and affordable:
- 1.5-2 points (percent of the total sum borrowed) for all amounts
or a fixed fee of $1750, whichever is higher.
For example, if the fee for a 120k transaction would be 1.75%, or $2100.00; whereas for a
60k transaction, the fee would be $1750.00)
- $395 administrative fee (includes wiring costs, etc)
What is the timing? How much lead time do I need to give Tempo?
Tempo requests that you submit your full documentation as soon as possible. We generally ask for at least 48 hours prior to funding, however with previous clients we can even do same day funding.