Sue, Both Buyer and Seller in Colorado Springs, CO

We want to purchase a particular bank owned home, but need to sell our home first

Asked by Sue, Colorado Springs, CO Sun Jul 20, 2008

since they don't take contingincies on bank owned homes, how do we not miss out on the one we want to purchase? do we need to have a contract on our home to move forward on the bank owned

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Answers

6
Hi Sue :o)

You are correct that normally banks do not accept a contingency that requires the buye rbe able to sell their current property first. This is even more true in the current market with the banks having so many foreclosed and repo properties to deal with and with times on the market to sell properties being longer.

In your situation, if you are really intent on purchasing the bank owned property, you may want to explore using a bridge loan. You can read about them here: http://www.brianwess.com/NeedaBridgeLoan

If you would like I can also refer you to some professional local lenders who can discuss bridge loans, how the work and their requirements with you.
2 votes Thank Flag Link Sun Jul 20, 2008
Hi Sue,

It is great to be excited about a good deal, but don't overextend yourself to get the home. You can check with a lender to see what options you have, but keep in mind that your home may take longer to sell than you think. Have your Realtor explain the average days on market for your neighborhood and the market value of your home. Good luck!
0 votes Thank Flag Link Mon Jul 21, 2008
The most important thing to do first is talk to your mortgage person. He or she will be able to give you several options based on your particular situation. I then would ask your realtor for an honest comparable market analysis (CMA). You will want a true financial understanding of selling your current home with the worst-case scenario on pricing and on Days on Market. Once you have all the information, you can make an informed decision, even if that decision is to pass on the new home.
0 votes Thank Flag Link Mon Jul 21, 2008
If you can qualify for both, you will be fine. Just talk to a lender and get prequalified.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Sun Jul 20, 2008
If you can afford the home without selling your current home, put in an offer. If you cannot.....and you MUST sell your current home...hold off. The market is very fluid at the moment...and you do not want to be strapped to two loans that you cannot afford.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sun Jul 20, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
MVP'08
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NO you don't need a contract on your home prior purchasing the foreclosures. You will need to be qualified with a pre-approval letter from a lender. Contact a mortgage broker in your area from Trulia with your short and long term goals. http://www.lynn911.com http://www.homes-for-sale-dallas.com
0 votes Thank Flag Link Sun Jul 20, 2008
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