Buyer Bails!!!

[Todd Gustafson]

I've read other posts about buying an REO and the buyer cancelling at the last minute. I've yet to see a satisfactory resolution should a deal fall through at the last minute. I'm interested in using HML and PL so I can do more than 1 deal at a time.

So, what happens if I close with transactional funding, HML, or PL and my buyer doesn't show up or calls off the deal? Does transactional turn into a loan with my HML or PL? Am I charged so many points each month until paid off or how does this work?

I'm trying to avoid as many problems as possible being new at this.