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Guest 0.10 Dollars($)

Hi all,

I have another question for you, hopefully, I have posted in correct forum!

We put an offer on a home. The home is a short sale situation and our agent told us that most of the time it takes the bank 3-4 weeks to respond to offers. We knew it was a risk, but we put an offer on the new house, not having sold our current home. We were hoping a month or so would pass and we could try to sell our house.

The bank responded in 2 days with a counter, and we are now waiting for word that it is accepted. From all indications the bank is going to accept our offer. Our agent is telling us that they will want to close in 17 days, by March 1st (that is when the homeowner will default on the loan). This seems very fast. We were using our tax return for funding, we don't expect that for a few weeks yet. We gave $1000 EMD.

If feels like we are being rushed and we don't even technically know if we have the house. Can we say we don't want to close so quickly?

I could be wrong but I have a gut feeling my agent and the L/A want to settle this before March 1st for some reason. Is there any advantage to them to close before it goes to foreclosure?

If the bank is willing to accept our offer, wouldn't it be reasonable to think that they would stop foreclosure procedures?

I appreciate any and all help!!!

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Dee,

I think you should go for the loan only when you are totally ready for it. If it seems to you that you cannot afford it now then you should wait and sell your present house first to gather money for closing.

Best of luck.
Larry

kpatrick · Posted: Tue Feb 12, 2008 3:16 pm Post subject:

I agree with Larry, in that if you feel that is something is not right, or if you know that if you had both payments that it would be a hardship for you; then you shouldn't move forward, even if it means losing $1000. My main question is how was your offer worded...did your offer say that you would close before March 1st?

Also, do you think you could get approved for a loan on the new home with still owning your current home? Another thing to consider...how are homes selling in the location where your current home is located? Or if you definitely want this new home, and you don't think you could sell the old one quickly enough...would you consider renting it until the market comes back around?

I know I am throwing a lot of questions at you...but I am just trying to help you look at all the options. In closing, I would like to say that the Realtor probably has no ulterior motive other than they don't get paid if the sale doesn't close. And the bank is moving quickly, probably, because all banks are getting deluged with foreclosures and defaults, and when they get an offer, it is in their best interest to move quickly on it. SO I don't really think anyone is really trying to force you, necessarily...it is just a slow market right now, and when they get a "bite" they are all over it like white on rice!

Guest 0.10 Dollars($)

Thanks for the info. We have considered most of the points you have raised. We can techinically carry 2 mortgages, but it is not desired. We need to put alot of work into this new house and were thinking 3-4 months we would carry the 2 if necessary. No, we did not have any wording in our offer that we had to close by March 1st.

Caron · Posted: Thu Feb 14, 2008 1:51 am Post subject: RE: short sale closing

So, do you have plans to pay down the second loan after 3-4 months through a cashout refinance of the first and second? what are your plans to pay down the second? I'm concerned because for the past few months, I've been finding a lot of people who have suffered due to 2 loans and then foreclosure or a short sale was their final option. But it entails a lot of stress and why would you want to stress yourelf with 2 loans? I think you're taking out the second for a definite purpose probably. So can't it be done with other options? Just a bit concerned due to recent foreclosures in the market.

However, if you buy this home, the bank will stop the foreclosure on it. There is one more thing to be noted here and that is, there's no written statement that the closing should be done by March 1st. So try negotiating with the bank through your agent and postpone the closing just in case you need more time for it. But you need to give the bank a proper explanation.

good luck

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