Bank Knows Its Underwater But Reluctant To Postpone
Loan is $220k but the BPO came in at $160k. ARV is $280k . Bank is willing to take $147k. My cover letter offered cash but my HUD listed an entity as an out of state lender. Bank reluctant to postpone since the sale is only 7 days away and cost to postpone is perceived high. What to do?
Are they bluffing me and hinting that I should pay up? The numbers show that they REALLY don't want this.
I'm thinking of offering a few thousand to pay the legal to postpone/cancel. This could be wired with the understanding that we would close. I would of course want that in writing. I have the cash to close but would like to double close it with a buyer. BTW I indicated a 3/27/04 close on my HUD.
The banks latest email reply to me:
BANK: <<<Sorry I (loss mit) didn't get back with you via by phone, but it's coming up on
end of month and it's extremely hectic around here. Management doesn't
understand why the sale can not close being that the offer is CASH?
Please advise, it is not looking good for us to postpone as the cost to
postpone the sale is high. Please advise if there is anyway you can close
sooner, the FCL sale date is set for 03/03/04. Thank you>>
What do to?null
Sounds like a great deal if your numbers are right. I would be afraid to let this one get away. Which bank is this with? Can you find a cash partner? It's always good to have cash partner prospects to call short notice. Hard Money would work but would be expensive. I like your idea of sending some money to offset expenses of postponing. Seems like banks postpone often and they've never complained about extra fees? Check out a small local branch bank for a 6 month interest only construction loan. You should easily get this with the low LTV. Good luck with this deal!
If you offerred all cash, the bank is holding you to it. Sounds like you have a good deal in the works. Do you know anyone you can borrow the money from?
Are there any hard money lenders in your area? I would do everything in your power to buy this deal.
One thought is you could call the bank back and open up escrow. You could then tell them in two days that your title company found some problems on the prelim. The bank will now be forced to postphone. This is just a thought.
Good Luck,
Jeffrey Adam
[addsig]
I have the cash, but would rather not use it. I know I could refinance after, but again would rather not go through with the process if I can merely get a postponement instead.
I like the suggestion about bringing up title issues.
We've been negotiating this for several weeks now and they have brought up the sale date problem yesterday. They were very eager to do a short. They even ordered the BPO BEFORE I sent out an offer. Luckily, I knew what the BPO would be before I submitted my offer. I offered 82%. They countered that it was a conventional mortg. and could not do a discount less than the BPO. I countered that my boss could go up to 92% and no more. They caved and said yes but needed approval from the committee. Now they're crying about legal to cancel the sale.