Warranty Deed/purch Agreement Timing
I am negotiating a short sale with bank - do I need to have a warranty deed and purchase agreement in place now or do I do that after I have finished negotiations with the bank.
I am negotiating a short sale with bank - do I need to have a warranty deed and purchase agreement in place now or do I do that after I have finished negotiations with the bank.
You definitely need both and some more paperwork for that to happen..
But do I need them both now or after I have got the bank to agree to a short sale price that I can work with?
Hi csilvestri,
To approach the bank with a SS proposal, of the two things that you mentioned, the bank will only require a Purchase and Sale Agreement between you and the homeowner.
I know that some investors want to get the deed signed /notarized and in their hands right away (and there is nothing wrong with that), however, I dont go through the trouble of getting the Deed until I get approval for the SS. I hope that helps!
BAMZ
Bamz,
I know I am missing something here but - How do I have them sign a purchase agreement if I do not know what my negotiated price with the bank is yet?.... or should my negotiations with the bank not matter in terms of the purcahse agreement price?
thanks again for you help.
csilvestri,
That is right, you do not know what your negotiated price with the bank will be, but you have to start with a price. Your offer on the P&A can and will be changed and adjusted.
If the contract reads that you will buy the house at $70,000 and the negotiations with the bank turn out at $80,000, do you think your seller will be ok with that? Sure they will, because you are paying more than you started with! Are you catching on?
BAMZ
yes, that is starting to make sense. I'm thinking it will make much more since once i go through the entire process!
csilvestri,
After the first one it will be a peice of cake! Dont let the little details bogg you down, it truly is a simple process!
Keep as questions to the board and they come up!
BAMZ