Most banks do not take contingent contracts. If they do, a contingency to settle is more likely to be accepted than a contingency to sell.

Actually, you're in a much better negotiating position if you are a fully non-contingent buyer. You lose negotiating power when your offer comes in with contingencies of any type.

Tue May 6 2008, 06:40

Hi Barb,
My experience with banks is they will not consider your offer. Banks want the loan off their books asap. Keep in mind sometimes Foreclosures are not your best option. For you right now you may want to consider owner occupied homes. Many owners who truly need or want to sell are pricing themselves well. Chances are there will be a lot less stress for you. Many of the bank offers we are currently working are taking weeks if not months to close.

My fear for you would be you perform until you have the funds to close.If you were to enter into a contract you could stand to loose your earnest deposit and a roof over your head. If you need help, let us know.

Thu May 1 2008, 17:24

The timing could be crucial. Is the property you're buying in the short sale stage, and how long has it been a short sale?

What we're seeing lately is that it takes 30-45 days before a lender responds to a short sale offer (after the seller accepts). The lender will obviously prefer a financially solid offer usually from a buyer with an initial deposit of 1-3% of offer price, a substantial (or comfortable) downpayment perhaps 10% of purchase price, with the least and shortest contingencies for buyer inspection and loan approval/appraisal, and a reasonably decent offer,

If your offer is accepted, it could be another 30-45 days before you can close. That could be just about 90 days.

What you will need is cash for your initial deposit should your offer be accepted. Is this doable?

You may want to wait a while and see if anyone writes an offer on the townhouse. Remember, even if there is an accepted offer (by the seller) on the townhouse, the ultimate decision rests with the lender who will choose the best and highest offer for the property. So even if you come later, if you have the best offer, the lender may choose yours!

Nonetheless, you may want to wait until you are a lot closer to completing your own escrow before you write on another. Who knows, another property may become available later that is better suited for you. Ask your realtor to keep you posted. It's a good way to also keep up with the market conditions.

Sun Apr 27 2008, 01:46

Most lenders with a property in foreclosure will not consider a contingent contract. Have YOUR agent get in touch with the listing agent and find out if there is any flexibility. The lender is looking to sell their property and if someone else wants it and can settle sooner they will get it but it never hurts to ask.

Sat Apr 26 2008, 17:17