Borrowers that do not want to close at an escrow office.
Hi BP, I have a borrower that is acquiring a property through a non-performing loan. They are buying the loan and foreclosing to own the property. So initially instead of giving me a deed of trust, they will give me an assignment of collateral. Once they own the property then they plan on record a deed of trust with me in 1st position. They aren't using an escrow company for the transaction, the seller's attorney has agreed to act as the intermediary so they gave me two options. One I can wire the money direct to the intermediary or two, I can wire the money directly to my borrower and they will take care of it.
1. I don't understand what they are doing so if you can shed some light on what they are doing that would help me.
2. I never wire money to a personal account or a business account. If the intermediary is really who they say they are then would that be ok or should I demand that they closing at an escrow office?
Any wisdom you can give, I would be very thankful.