Silly Question
If I have a HML or private mortgage broker who can close within 15 days and the amt being borrowed is 100% of the purchase price, would it be considered as a cash offer or as regular financing??
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Now I'm wondering if my question is that bad that it doesn't deserve an answer!! Please help me to clear this up
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It depends on what you are talking about. I consider a cash offer any offer where the seller's liens get paid off and the seller can walk away with whatever is left. In that sense this is a cash offer.
If you are refering to a purchase agreement where it asks if you are paying with cash or a loan, you can put what you want to here. If you put you will be paying all cash you can still get a mortgage--but the cash better be there at closing. Checking the mortgage box will give yourself an "out" if for some reason your financing falls through.
I hope this is the answer you are looking for. If not, please clarify your question.
GOOD LUCK
Thanks for replying "myfrogger" that's the answer I was looking for, so it can be said that my offer is a cash offer as long as the seller is fully pd at the closing table on the agreed purchase price.
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Fixer Jay would call that a cash buy. It's one of his powerful negotiating techniques. He offers a lower price for all cash, btw.
my offer would not be contingent on a loan but what if the loan is already available, what would it be considered as ??
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Hey,
You can say anything you want on the contract regardless of how you decide to finance the house...the only issue is you will lose any earnest money you put down (as you will not have the correct finance clause). If you have $100k sitting in the bank or HML who will give you $100k, it is the same thing to the seller(except for REO). In 7 days (or whatever), they will have $100k in their hands. As I mentioned REO will required proof of fund and HML is NOT cash, as they HM lender can still say "No."
Exactly right, Bruce.
A "cash" offer in this sense is one which does not have a mortgage contingency. That means you agree to close whether you can get a loan, or get your HML to fund, or not. Unless you are REALLY sure the HML guy will do the deal (as in he has already transfered money to your control) or have access to the cash to close on your own then making an offer without contingency for a mortgage is fraudulent and, if you don't close, could cost you more than your earnest money.
Thanks to all who have contributed to my question. I use the 30 day inspection clause just in case the Home inspector finds something that I don't with the sole remedy being the earnest money. What are the possible drawbacks to my approach and please recommend a better way. Thanks again
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The term "cash" doesn't mean anything anymore. Cash to me means no loans involved. I had one guy say cash to him meant the banks cash (loan).
Ok, I'm still new in the REI arena and am somewhat confused about the use of the term 'cash' I have lost several deals to the 'cash' buyers... who didn't actually have cash. How exactly does that work??