Offer Letter Must Haves
Hello,
I am about to write an offer letter on a foreclosing property. It is in it's early stages of the process. I will be buying directly from the homeowner. There are a couple of concerns I have...any help will be appreciated.
1. I want to get an acceptance now but close in March. What will happen in the time between with the foreclosure??? Can I contact the lender and tell them she has an accpted offer?
2. Her husband, who has since died, is still named on the mortgage but as John Doe. Is this a simple thing to remove?
3. What should I put in the offer letter to protect myself from any unforseen problems??? I know the basics...clear title, etc. Anything else???
Lender has no obligation to wait on your contract (and won't even look at an offer letter), and will proceed with foreclosure unless you mutually agree on a timeframe, so you MUST contact the lender. Not sure any lender would be happy about waiting 5 months for you to close, but you never know.
You need some contingencies in the contract to protect yourself.