topic Re: Has anyone heard of this in Mortgage Loans

Has anyone heard of this

mzniko — Thu, 21 Oct 2010 20:01:50 GMT

There is a foreclosed home I made an offer on with a fha 203k loan for financing. I have two preapprovals because in order to make the offer, buyer had to be approved by the seller's lender as well.. which is BofA. Well I hear back this week that my offer was accepted, but they want cash. Who does that and what is it called? I bank with BofA and a very good customer(not that really matters) but....what is with this? Anyone?

Re: Has anyone heard of this

mauve — Thu, 21 Oct 2010 20:16:14 GMT

Cash means no mortgage. You just pay them.

Re: Has anyone heard of this

mzniko — Thu, 21 Oct 2010 20:26:22 GMT

So why go thu the preapproval with their lender. They were expecting financing because of the preapproval requirement with their lender right? And its not like the amount is under 50k. Its still over 100k. I dont know just looking for answers because I am confused as to why they would change it now.

Re: Has anyone heard of this

Sommery — Thu, 21 Oct 2010 20:28:16 GMT

Did you put a financing contingency into the offer? If not, you could have problems. Did you have a buyer's agent or lawyer draw up the offer, or did the sellers agent do it?

Re: Has anyone heard of this

mzniko — Thu, 21 Oct 2010 20:33:58 GMT

I had a buyers agent who put together the offer and there has been no other bids/offers on the property.

Re: Has anyone heard of this

Sommery — Thu, 21 Oct 2010 20:55:22 GMT

My contract states:

32. Which Buyer agrees to pay in the following manner:

33. 1. Cash of 3.5 percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest

34. money; PLUS

35. 2. Financing of 96.5 percent (%) of the sale, price which will be the total amount secured against this property

36. to fund this purchase.

On an addendum to the contract I have:

13. FINANCING CONTINGENCY: The purchase Agreement is contingent upon the following and applies to the first

14. mortgage and any subordinate financing.

15.

16. If Buyer cannot secure the financing in the Purchase Agreement, and this Purchase Agreement does

17. not close on the closing date specified, this Purchase Agreement is canceled. Buyer and Seller shal immediately

18. sing a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money to be

19. refunded to Buyer.

Is there anything like this in your offer? Once both parties sign the offer, it becomes a binding contract so if there is nothing about the financing and it's all signed, I'm not sure what would happen. If you did have this in the contract, you'd have to sign an amendment to change it to CASH. Maybe this is just their counter offer. As in, they'll accept your offer if you can pay cash for the house. If not, then you can counter-offer, say upping the purchase price if they'll let you get a loan.

Is the house in rough shape? Maybe the seller knows it won't pass an inspection/appraisal. I put an offer on a house and since I'm using FHA they wanted me to use HomePath (HUD House) because the house needed to be painted and they knew it wouldn't pass an FHA inspection.

How badly do you want the house?

What does your agent have to say about this?

Re: Has anyone heard of this

mzniko — Thu, 21 Oct 2010 22:56:42 GMT

I have to get my contract and check it to see, but I wanted to make this post before taking a final exam. Yes the house has nothing in it. The previous owners took everything out..(literally) which is why I applied for the 203k loan. My agent says that he has not had this ever happen to him before. So they want to relist the house for cash only. to see it any offers will come in. My agent was not happy about it and said that he is going to wait a week to find out who is where as far as decision making and resubmit the offer.

I do want the house...really I do!!........really really do!!

Oh and yes you are right....that is their counteroffer.

Re: Has anyone heard of this

DallasLoanGuy — Thu, 21 Oct 2010 23:13:53 GMT

seller has the option to take cash only. sounds like they are idiots

Re: Has anyone heard of this

mzniko — Fri, 22 Oct 2010 03:33:11 GMT

I was thinking the same but being a first time homebuyer I was just wondering if it was me or if it were them. I knew there are cash offers out there, I just thought maybe .....eh! (speechless)

Re: Has anyone heard of this

MarineVietVet — Fri, 22 Oct 2010 13:44:50 GMT

DallasLoanGuy wrote:

seller has the option to take cash only. sounds like they are idiots

Don't hold back. Tell us what you really think. :smileytongue:

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 10/10-774
You can do the same thing with hard work

Re: Has anyone heard of this

mauve — Fri, 22 Oct 2010 13:55:16 GMT

"Sure, I'm trying to sell a house in the worst seller's market in years. I think I'll hold out for a cash buyer."

Re: Has anyone heard of this

mzniko — Fri, 22 Oct 2010 16:47:02 GMT

yeah I was thinking that this is insane! Well more like crazy as heck! but what can i do if anything?

Re: Has anyone heard of this

kriskaden — Fri, 22 Oct 2010 19:44:02 GMT

mzniko wrote:
yeah I was thinking that this is insane! Well more like crazy as heck! but what can i do if anything?

If that was the bank's counter you can always counter their counteroffer and add your financing terms back in. If they countered your original offer you still have the option of coming back to the table. Did you submit your preapproval letter (with the $ amount whited out of course) with the offer?

The worst thing they can say is no, then you just wait a week or so and try it all over again.

Re: Has anyone heard of this

mzniko — Tue, 26 Oct 2010 01:47:45 GMT

I did have my agent whiteout the approval amount. Whats funny is that on their own website......they did not list the property as cash...and the site was just updated...go figure!**shrugs**

My agent wanted to see proof that the bank did not accept the offer.....and they have basically avoided the request.