Home Buying in 19701>Question Details

Brenda, Home Buyer in 19701

Can I buy a short sale property contingent on the sale of my current home.?

Asked by Brenda, 19701 Sat Aug 8, 2009

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I do a lot of short sales and I can tell you that 100% of the time the banks I have worked with will not allow a contingency of sale. I have had some that move super fast offer to close in 45 days and others that have taken close to a year. I think they shy away from the contingent sale just in case they can close quickly.
0 votes Thank Flag Link Thu Feb 23, 2012
Do you currently have an offer on your home for sale? Typically the lender wants as little red tape as possible on Short Sales. There could be multiple offers so they are going to choose the most attractive one. I have a few ideas.....
0 votes Thank Flag Link Tue Oct 20, 2009
Brenda, most likely not. YOu see the bank has final approval on the offers so if the seller accepts the mortgage company can reject.
0 votes Thank Flag Link Sat Aug 8, 2009
On a "short sale" buyers need the agreement with both the present owner and the lending institution(s). Eventhough you may be able to get the owner to agree to a "contingency," it's highly unlikely that their lender will approve.

On the other hand, can anyone accurately predict what course a bank will take?
0 votes Thank Flag Link Sat Aug 8, 2009
While you can always try and put in an offer with a contingency, the likelihood is that the bank will not accept this offer. The bank is not in the business of selling houses, they want the property off their hands as soon as possible for the best price possible.

When given the option between an offer that is all cash and one that is contingent on getting a mortgage, the homeowner will likely choose the cash offer even if it is for a bit less then the offer contingent on the mortgage. This is because the offer accepted by the homeowner must then be accepted by the bank. The key to short sales is closure. The homeowner doesn't want to get to the point of foreclosure so they want an offer that is certain. When there are contingencies nothing is certain, especially in this market.
0 votes Thank Flag Link Sat Aug 8, 2009

The answer is no. Banks will not accept contingencies.

If I can help you with any of your real estate needs, please don't hesitate to give me a call at (302) 540-5373.
Web Reference: http://www.jroark.com
0 votes Thank Flag Link Sat Aug 8, 2009
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