Your seller is under contract. Your end buyer was lined up — then their hard money loan was denied, leverage got cut, or they ghosted because financing fell through. Reassigning is the default move, but it costs time, credibility, and spread. When a wholesale buyer can’t close because of financing — not because they flaked — Second Look may still save the deal.
For end-buyer loan options see end-buyer financing. For the full pipeline see wholesale deal financing. To vet buyers before assignment see wholesaler proof of funds.
Why wholesale buyers fail to close
| Cause | Rescue potential | Next step |
|---|---|---|
| Hard money / DSCR declined | High — different lender or leverage | Submit Second Look |
| Lender backed out late | High — timeline dependent | See hard money lender backed out |
| Fake POF / no real capital | Low — vet buyers better | Wholesaler proof of funds |
| Buyer cold feet | Low — financing rescue won’t fix | Reassign or release |
| Double-close funder pulled | Medium — both legs review | Transactional funding + Second Look |
Rescue vs. reassignment
| Second Look rescue | Reassignment | |
|---|---|---|
| Buyer | Same vetted end buyer | New buyer from marketing |
| Timeline | Often 7–10 business days on complete file | Often 1–3 weeks to re-market |
| Spread | Preserves negotiated assignment fee | Resets negotiation |
| Best when | Financing failed, buyer still wants deal | Buyer flake, bad economics, or clock too short |
Run the math on your A-side deadline before defaulting to reassignment.
Wholesale rescue workflow
- Confirm the buyer still wants the deal and can perform at revised leverage
- Gather A-side and B-side contracts and title contact
- Submit Wholesaler Second Look with failure reason, original term sheet, and A-side deadline
- Parallel transactional funding if structure is double close
- Reassign only if rescue timeline exceeds A-side contract
Do not tell the seller financing failed until step 3 confirms no path — premature notice kills extension leverage.
Assignment vs. double close — different rescue paths
Assignment: End buyer needs full end-buyer financing — hard money, DSCR, or bridge on the B-leg. One purchase loan, one close.
Double close: A-leg transactional funding and B-leg purchase financing must coordinate same day. When the B-buyer’s lender pulls, you need parallel rescue on the purchase loan while the transactional letter stays valid.
Include structure type on every submission.
Product-specific B-leg failures
End buyers planning hold exits often hit DSCR loan denied on STR income or coverage — see DSCR loan denied. Flip buyers hit hard money loan denied on LTC or experience — see hard money loan denied. Late retrades and silence map to hard money lender backed out. The rescue product matches the buyer’s actual plan — upload the original term sheet so Second Look sees what broke.
What to submit
- A-side and B-side contracts
- End buyer entity and contact (with permission)
- Original term sheet and decline or back-out documentation
- Scope/budget (flip) or rent roll (rental)
- A-side hard close date
- Whether transactional funding is needed on A-leg
Complete qualified B-leg rescues often close in 7–10 business days. Call (833) 264-7776 when A-side expires within 48 hours.
jakenfinancegroup.com/rescue · jakenfinancegroup.com/saveadeal
A-side clock math — when to reassign
| A-side days left | Rescue viable? | Wholesaler move |
|---|---|---|
| 10+ | Yes — submit Second Look first | Parallel backup buyer quietly |
| 5–9 | Yes if file complete today | Call (833) 264-7776 |
| 2–4 | Maybe — rescue priority | Extension request to seller |
| 0–1 | Unlikely | Reassign or release |
Spread preservation favors rescue when the buyer still wants the deal and only financing failed — not when the buyer never had capital.
Documents title needs before rescue review
Title should remain open with the same escrow officer when possible — switching title mid-rescue adds 2–4 days. Provide:
- Escrow contact and file number
- Whether earnest money is still in play
- Assignment fee amount and wire instructions
- Any seller extension already granted in writing
Prevent the next failure
Tighten buyer vetting before assignment — wholesaler proof of funds. Match buyer plan to product on end-buyer financing before marketing the deal. Keep one backup buyer warm on deals with assignment fees over $75,000.
Illustration: the first lender’s box, and a second path
This sketch is not a closed rescue. The A-side contract is $186,000. The assignment fee is $19,500, so the end buyer’s price is $205,500. The buyer plans a flip with $48,000 of rehab. All-in cost is $253,500. Supported after-repair value is $330,000. Seventy-five percent of that value is $247,500. One hundred percent of cost would be $253,500, so the lower cap is $247,500. Cash to cover cost is $6,000.
The first lender offered 65 percent of cost, which is $164,775. The buyer would need $88,725 in cash. The buyer has $25,000 liquid, so that term sheet cannot close. A file built to the 75 percent after-repair cap needs $6,000 of that liquidity, which the buyer has. Interest at 11.25 percent on $247,500 for seven months is $16,242. A later sale at $315,000, before commissions, leaves $45,258 after the $253,500 cost and that interest. Selling costs still reduce it. The wholesaler’s $19,500 fee is already inside the $205,500 price. It is paid if this buyer closes.
If the wholesaler re-trades the assignment down to $14,000 to attract a new buyer, the fee drops by $5,500. Rescue is the attempt to keep the $19,500 by fixing the loan, when the buyer is real and the deadline allows it. Jaken Finance Group fix-and-flip loans are interest-only from 8.99 percent to 13.5 percent, can fund up to 100 percent of cost on a qualified file, and stay capped at 75 percent of after-repair value. Term is 6 to 12 months. A complete file can close in 7 to 10 business days.
If the buyer wanted a rental, use the rental clock
A flip denial and a rental denial are different files. A DSCR loan is quoted from 5.75 percent to 10.5 percent and closes in about 14 business days, not on the 7 to 10 day flip clock. Bridge is the middle path when the house will be rented but the lease is not in place yet. Bridge loans use the 8.99 percent to 13.5 percent interest-only range, run 12 to 24 months, and go up to 90 percent of the purchase price. They can close in 7 to 10 business days on a complete file. Send the original term sheet so the second review can see whether the miss was leverage, a missing lease, or a borrower who planned to live in the house.
Freddie Mac’s 30-year fixed rate was 7.28 percent for the week of October 1, 2026, and 7.03 percent the week of September 24, 2026, on FRED MORTGAGE30US. A consumer pre-approval at that print does not fund an LLC flip or a non-owner rental on a wholesale deadline. The official interpretation of 12 CFR 1026.3 treats credit for non-owner-occupied rental property as a business purpose, including a single-family house rented to someone else. If the buyer expects to occupy the house more than 14 days in the coming year, that comment says the property cannot be treated as non-owner-occupied. Jaken Finance Group lends on non-owner-occupied investment property.
What to say to the seller while the file is in review
Ask for a written extension only when you know the day count. A complete flip or bridge rescue targets 7 to 10 business days. A DSCR rescue targets about 14 business days. If five business days remain on the A-side and the B-side file is still missing a scope, the extension request should cover the missing days plus the underwriting window. Put the new date in a signed amendment. An oral “we’re fine” from the listing agent is not an extension title can rely on.
Keep the same escrow officer if title is already open. A new title order adds days you may not have. Tell title the buyer is unchanged and the loan is being replaced, and send the new lender’s contact when you have it. Leave earnest money in place unless the contract says a failed financing notice releases it. Read that clause before you promise the seller a refund.
Rescue package, line by line
- A-side contract, with every amendment and the current closing date.
- Assignment or double-close instructions, including the fee and who pays it.
- End-buyer name, entity, and phone, and permission to contact them.
- The decline letter or the term sheet that cut leverage, not a summary from memory.
- Rehab scope and photos for a flip, or leases and rent for a hold.
- Proof the buyer still has the cash the revised loan will not cover.
- Title file number and the escrow officer’s email.
Match the decline to the product that can still close
Read the reason before you ask the seller for more time. A leverage cut, like the 65 percent offer in the sketch above, can move if a second lender uses the after-repair cap. A missing lease is a DSCR problem. Bridge can close the purchase while the tenant is still being placed, at up to 90 percent of the purchase price, for 12 to 24 months. A buyer who failed because they planned to occupy the house is not a rescue. Jaken Finance Group does not finance owner-occupied property.
On a double close, the A-leg letter has its own expiration. If the B-leg needs 7 to 10 business days, that letter has to still be good on the morning both deeds record. Ask the A-leg funder whether they will reissue for the new date. Do not assume the first letter survives a two-week delay. Coordinate the new date with title before you tell the seller you are clear.
Days left versus the product clock
Count business days, not calendar hope. A complete flip or bridge file targets 7 to 10 business days. A complete DSCR file targets about 14 business days. If you have 12 business days and the buyer needs DSCR, the package has to be complete immediately, and you still need the seller to cover a slip. If you have 12 business days and the buyer can flip or bridge, the window fits a complete file with a small cushion. If you have three business days, neither clock fits unless the file was already in underwriting. That is when reassignment, not another application, protects the contract.
Submit at Second Look for wholesalers. If the A-side expires inside 48 hours, call (833) 264-7776 the same day. Product fit before you assign the next deal sits on end-buyer financing.
Submit wholesale rescue · Pipeline overview: wholesale deal financing