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?
Cash means no mortgage. You just pay them.
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.
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?
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.
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?
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.
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)
seller has the option to take cash only. sounds like they are idiots
Don't hold back. Tell us what you really think.
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