Home Buying in Essex>Question Details

erin.turner07, Home Buyer in Essex, MA

We own a home are are just starting to look for a new home. We just saw a home we would like to purchase but can't carry two mortgages.

Asked by erin.turner07, Essex, MA Sun Aug 12, 2012

We can only put down 5-10% and was wondering if mortgage companies are accustomed to making the sale final contingent upon the sale of our present home. Is this an unusual request or something we should have no problems with?

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5
Yes, home sale contingency deals are common especially in the suburbs. Just remember those terms (home sale contingency) are not favorable to the seller so this means you will not have as much leverage in the negotiation.

Feel free to reach out with any other questions. It's what we do :)

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0 votes Thank Flag Link Mon Aug 13, 2012
Not unusual at all. You should have a solid pre approval and we can help with this. Rshapiro at assetmortgage dot net.
0 votes Thank Flag Link Mon Aug 13, 2012
Erin, to respond to your "reply" comment to me..............the fact that this is a foreclosure probably will make it even more difficult for you to buy it with a home sale contingency as part of your offer.
However, this should be easy to determine........just have your agent reach out to the listing agent - you will get a quick yes or no.................

If the seller was a 'regular" person, there might have been creative ways to work through this............but.....unfortunately, banks are not known for their creativity!.

This is probably not what you want to hear, but, in my opinion, you need to sell your home before you can buy......whether it is a foreclosure or a plain of run of the mill listing.

Why not get your house on the market, asap, so you can get a sense of how the market will respond.

Best wishes.........
0 votes Thank Flag Link Sun Aug 12, 2012
Like Debbie says below, it is not uncommon for lenders to provide a commitment subject to the sale of your home, and like Debbie say's most sellers don't like to take a offer subject to the sale of your home.

There are ways to deal with offers and get sellers to accept it subject to, but you need a good buyers agent that can represent you and your situation in the best light, so that it will be a win win for everyone.

Where is your present home located and what is the normal days on market for homes similar to yours?
0 votes Thank Flag Link Sun Aug 12, 2012
Yes, the mortgage company/bank most likely will make your approval contingent on the sale of your current home........

that's not your problem.........

your problem is...the sellers most likely will not accept a contingency like that, nor will they take their home off the market with a 'subject to " clause.
0 votes Thank Flag Link Sun Aug 12, 2012
The house is owned by the bank due to a foreclosure. The house has been on the market for a year and they are really wanting to get rid of it.....does this help us at all?
Flag Sun Aug 12, 2012
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