Home Buying in Riverview>Question Details

1stHomeHunt, Home Buyer in Greensburg, PA

One day they are willing to look at mortgage offer - next day they only want cash offers - something fishy!!

Asked by 1stHomeHunt, Greensburg, PA Thu Apr 18, 2013

So my question is - can a mitigation company (one that says we want to prevent your home from foreclosing) refuse a mortgage offer at the asking price? If they can - why would they? Is it legal to "hold" properties until foreclosure (property has been on zillow for over 200 days)

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Answers

4
You bet they can and SHOULD!
The seller want to select the buyer with the hightest probatility of closing.
A financed BUYER will most likely be HANDICAPPED by the FIAT appraisal imposed by their lender.
If you did not waive the appriasal contingency AND demonstrate that you have cash on hand to make up the difference...the out come is.....YOUR OFFER IS NOT COMPETIVE!
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You need to chat with your agent and review the full spetrum of the situation regarding short sales. Very few buyer are equipped to compete in this arena. Even if you did waive the appraisal contingency, most end user buyes will bail out long before the negotiations have reached a actionable stage.
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Consult the professional you hired. When they say "Short Sales are the Wild, Wild West of Real Estate," He/She is not kidding.

Now you are beginning to see the light.
1 vote Thank Flag Link Fri Apr 19, 2013
There may be a reason that the seller is only accepting cash offers. If they property had a buyer doing a mortgage and the property required repairs or could not qualify then they may only be willing to work with cash offers. Did you make an offer and they said no because of financing? You can ask why - the realtor should be honest with you as to the reason why.
1 vote Thank Flag Link Thu Apr 18, 2013
Also fyi some Short Sale owners (and even mitigation companies) will rent out a property and collect "free" rent money or if it's owner occupied they may want to stretch out the time period to live "rent free". The only person that can control the process is the Seller, not the mitigation company. The Seller has 100% control but my take advise from her/his listing Realtor and/or a mitigation company.

Also there are some unethical activities that go on with short sales, like "flips" (aka flops). It's purely mortgage fraud but it may still be happening. The seller will write a contract with an insider and once it's approved they would immediately "flip" to the next buyer for a profit. Cash buyers are the easiest to work with on this type of transaction because some lenders will not like to see an owner that purchased and immediately sold for a higher price within days.
0 votes Thank Flag Link Fri Apr 19, 2013
Yes, a Seller on a Short Sale can pretty much do anything they want with their property until it is foreclosed and they no longer own it.

If you want any hope of getting a "chance" at buying that property you and your Realtor better do whatever you can to get the Seller to select your offer over the many, many they will likely receive.

Also remember that on any short sale the "list" price is pure fiction until/if the lender approves the price. You cannot get a great bargain on a property because the lender will do their due diligence to have an appraisal done to determine value.

A seller can change their mind and require only cash offers. I have a short sale like that only considered CASH offers because it will foreclose before a "retail" buyer has a chance to get a mortgage closed.

So focus on properties that are easier for owner-occupant buyers getting a mortgage to compete: http://www.HomePath.com http://www.HomeSteps.com and http://www.HudHomeStore.com

All the best,
Alma
Sold On Tampa Team
Alma Rose Kee, PA
Future Home Realty
813.244.9898
http://www.SoldOnTampa.com
0 votes Thank Flag Link Thu Apr 18, 2013
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