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Valued Member
mzniko
Posts: 25
Registered: ‎03-30-2008
0

Has anyone heard of this

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?


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Valued Contributor
mauve
Posts: 2,487
Registered: ‎02-18-2010
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Re: Has anyone heard of this

Cash means no mortgage.  You just pay them.


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Valued Member
mzniko
Posts: 25
Registered: ‎03-30-2008
0

Re: Has anyone heard of this

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.


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Sommery
Posts: 265
Registered: ‎07-24-2009
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Re: Has anyone heard of this

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?

Valued Member
mzniko
Posts: 25
Registered: ‎03-30-2008
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Re: Has anyone heard of this

[ Edited ]

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


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Frequent Contributor
Sommery
Posts: 265
Registered: ‎07-24-2009
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Re: Has anyone heard of this

[ Edited ]

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?

 

 

 

Valued Member
mzniko
Posts: 25
Registered: ‎03-30-2008
0

Re: Has anyone heard of this

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.


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DallasLoanGuy
Posts: 6,239
Registered: ‎07-03-2007
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Re: Has anyone heard of this

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

 

 




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Valued Member
mzniko
Posts: 25
Registered: ‎03-30-2008
0

Re: Has anyone heard of this

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)


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MarineVietVet
Posts: 14,577
Registered: ‎07-14-2009
0

Re: Has anyone heard of this

 


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:

 

 

 

 

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