SS Really Cash Only?
Will the bank only accept cash offers no matter what? If your dealing with a million to two million dollar properties then how can they expect people to have cash for that? Would they consider an offer with a preapproval for mortgage?
If not, what are other ways to get cash available to purchase? Is HM still considered financing?
Thanks for the update. I will be giving this web address to my homeowners.
It is really no different than any offer on a house. Anytime an offer is submitted the seller wonders if you should accept because a better one might be around the corner. The only difference is that you worry about the bank approving the offer. Generally, if the offer is within 90% of the Fair Market Value, it has a good chance of being accepted.
If your house is listed on the MLS, you are suppose to change the status to Pending after a certain period of time. So that would limit you fram getting multiple offers. I have seen listing stay ACTIVE with the public remarks changed to "Taking backup offers". But with those remarks the first realtor will probably ask for proof that the bank rejected their offer and I have not had good luck getting the loss mit reps so send something in writing stating that they have rejected the offer.
You could have an addendeum that states something like "If a higher purchase price offer is submitted within 15 days of effective date then the seller could terminate this contract or the buyer can match the offer." Something like that. But after 15 days, you would probably not want to start over again, even if the second offer is higher. Time is your enemy in a short sell.
Yea the last deal I closed the title company charged for 6 months of unpaid taxes, plus some home association leins.
Energy, you must have a title search done prior to closing so that there are no surprises. You act like it is the title companies fault that the taxes and HOA are delinquent. You proably could have told from the list of people who were served who had an equitable interest in the property. I bet the HOA was on the list of people served.
Again, I have never done a short sell where the homeowners were expected to pay a penny either before the closing or at the closing. These people have not made mortgage payments and have let their house go into foreclosure, why would they bring money to the table to sell the house?
The lender does not expect the home owner to bring money to the table. You have to structure your SS proposal for the lender to deduct taxes and HOA from their payoff. The lender knows that property taxes do not negotiate and I have never had the lender ask me to negotiate the HOA. If you can not get the lender to agree to an amount low enough to cover all the seller expenses, then you did not negotiate a SS amount low enough to sell the house.
You need to perform a title search and submit a HUD to the lender that reflects all the seller expenses that the lender must pay to get the house sold.
Did they let you know at least that they will accept that offer.
check out the post Seller "Seller Will Get 1099"