I'm getting just a little frustrated here!!! So we put a bid on this bank owned property that has been on the market for a LONG time and we just hear back today that the bank doesn't want to deal with anyone that doesn't have their home sold yet. Our house is on the market and we put in our offer 'subject to our home being sold'. The homes in my neighborhood are selling within 45 days. I just don't get it - why would they pass an offer when it could be the only one they get! (the house isn't exactly in the prime location) This is the second time this has happened to us.
2007-06-22 02:14:11 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Most sellers won't accept an offer subject to your home selling. It's just way too risky today. When I was selling some property last year I rejected half a dozen offers with that escape clause including 2 that were over my asking price. I made a wise choice as none of them had sold by the time that I closed the deal with someone who didn't ask for that concession.
It was one thing when the market was overheated and places sold in days. It's entirely another story when the market has softened as it has in some parts of the country. There's nothing for a seller to gain with that exception and a lot for them to lose, i.e. a sale!
If you want to move on this place prior to selling yours, get a bridge loan. That will allow you to use the equity in your current home to close the deal on the new one without transferring the risk to the seller of the new place.
The only contingencies that a bank is going to accept are inspection and loan qualification. They probably won't even accept a long closing date especially if your rate lock could expire in the interim. If a rate lock expires and you're buying at the upper limit of your affordability range you could lose your financing entirely.
2007-06-22 03:24:16 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Why did you move in the first place? I'm very curious about that. These are the options I see -- drop the price even further for an immediate sale and pay the difference. You may be able to sell some belongings to get yourself out of trouble and leave retirement alone. Make sure the property is spotless so that it is most desireable and the best priced. Raising the price won't work -- the house must appraise before the buyer's lender funds the purchase. Buyers are looking for a good deal, and if you can give them a great house for a good price, they will jump. Look at it this way: Your current payments are nothing but interest. You are paying almost nothing toward the principle because the loan is brand new. If your payment is $1,500 a month, in six months, that's $9,000 that you have basically thrown in a hole. That money is the cost you must pay for keeping the house. Or rent it. I don't know what your issue is with renting, but thousands of people own rental property successfully. You need to be more careful than you were in getting the mortgage. But it can be very profitable, or at least get you out of a sticky situation. Or move back home.
2016-05-17 09:20:49 · answer #2 · answered by ? 3 · 0⤊ 0⤋
The bank does not really care. It is all a write off and they still get their money from the borrower in the end.
Since homes are selling so quickly in your neighborhood I don't see why you would be concerned, the non-prime houses will be there next month too.
Banks generally do not accept any contingencies at all, your agent should have told you that. Find another, this one is ignorant.
Regular home sellers really just do not want to wait an indefinite period for your home to sell before they can move on with their own plans. If you want them to you should offer them a very sweet deal and make it worth their while.
2007-06-22 02:22:16 · answer #3 · answered by Elsa D 6 · 1⤊ 0⤋
You won't find ANY lender who will accept an offer on a foreclosed property subject to the sale of your present home. They just don't want to be bothered with it. They are looking for 'clean and ready' buyers for these properties. If you are using a real estate agent to submit these offers, they should well know by now that it's useless to submit such offers.
When you are looking to buy foreclosed/REO, you submit NO contingencies other than inspections. Be prepared to be approved for a financing when you submit the offer. The 'cleaner a buyer' you are, the better your chance of acceptance.
2007-06-22 03:21:02 · answer #4 · answered by acermill 7 · 0⤊ 0⤋