If you were to make a cash offer, you would be making an offer based on having the full amount funds available to close on that property using only cash. This type of offer is not dependent on needing to obtain a loan. Proof of funds will be required when submitting this type of offer.... more
Thanks everybody for the good comments I just wanted to mention that I am looking for a simple fee townhouse with the price of 250k and monthly tax and HOA 300$ so I need a 190-200k loan amount and I want a 5/1 ARM loan.... more
Chesire _ I agree with Thom. Being involved with many Short Sales something doesn't sound right. If they counter $25K over market value then donn't hold your breath any longer waiting for a response to your counter. Send them in writing that your offer is no longer valid, and I suggest you move on. There are many other Short Sales., REO, and seller owned property's available that won't give you the run around. Happy House hunting..good luck..oh and get a good Realtor if you don't already have one...... more
Hi Zorina, all the answers below have good information. To me the key question is your need. If you have any kind of time frame for moving, a short sale is a huge risk. Can you wait out the uncertainty and the indefinite time?
About 50% of short sales just don't go through (at least based on what our large real estate office sees); the house moves on to foreclosure. It can take months to find out whether the seller's bank approves the short sale, so after waiting 3-12 months, you may find that there is no house at the end, or that the bank will approve the short sale only if you throw in a bunch more money. And during that time, you run the risk that interest rates will rise. (I have buyers bailing out after waiting 10 months for the bank's response, because the bank wants another $35K. I have heard from another agent in our office about buyers who have waited a full year; in the meantime, they have added a baby and still don't have a house for it. I have another buyer who waited 4 months for a response and the bank wanted $30K more, so he bailed out. I had other buyers who got their property after waiting 6 months and agreeing to throw in $15K more. Etc., etc.)
If this deal turns into a short sale, I have heard that SunTrust is one of the more responsive banks for short sales. It helps to have only one lien, of course. And as mentioned, it may not become a short sale at all. The sellers might have sufficient cash to bring to the table. Or you can throw in more cash to make the transaction work. Or the sellers may be unwilling or unable to qualify for a short sale. Or the sellers may decide to wait to sell the home, if they can, until the market value improves.
So you need to know more about the sellers' position. You need to evaluate your personal situation and requirements before you decide how to proceed. Yes, you love this house and worked hard to find it. I bet you will find other homes to love.... more
It will depend on your individual situation, if you are eligible for VA (active duty or retired military) financing you qualify for 0% down plus seller can pay closing costs. At contract acceptance you will have to provide an earnest money deposit which is usually based on the sales price (the higher the asking price the higher the earnest money deposit should be). Another 0% down option exists with VHDA, but there are income limitations.
The other option would be a FHA loan program which will require 3.5% down, but seller can pay closing costs.
Hope this helps!
Gerda Gaetjen, ABR
That truly depends on your financial situation and your financial goals. If the rental market is strong in your area and you can afford to buy without selling, then it could be a wise decision. Keep in mind that your townhome may not rent right away and you may have some "down time" between tenants. If this will not affect your ability to make the payments on your larger home, go for it. Also keep in mind that being a landlord can cause a lot of headaches if you do not carefully screen your tenant applicants. After each lease period is up, you may have several thousand dollars of clean up, touch up to do before someone else leases the property. Be sure to get adequate security deposits and check on the unit throughout the lease. Don't wait a year to see how they are taking care of your home. I would also advise getting a home protection package to cover potential repairs such as the A/C, heat, plumbing, etc. (not due to wear and tear).... more
Thanks for reccommendation on an attorney. We just relocated from Florida to Virginia, so that's why the question is here. Fortunately, for us, according to our broker, our contract does not allow for 30 days for the bank to clear this up. Our agent has advised us that we can, in fact, void the contract since the bank failed to meet the closing date they set (and yes, had we missed it, we were going to be paying $150/day).
Had the seller mentioned that they needed time to record the deed before hand, I could have made other arrangements. The problem is, they never said anything about it and so we made plans to close on their chosen date, and move in. We're in a really bad spot now - no place to live, a truck load of stuff that has to be delivered soon. Oh well, live and learn I suppose.... more