Gratefuldan31, Home Buyer in 01505

How long can a seller wait on a buyer to acquire financing with a signed P&S in hand, and backup offers pending?

Asked by Gratefuldan31, 01505 Mon Feb 22, 2010

I am considering putting a backup offer in on a property that has had a signed P&S for three months, during which time the buyer has not been able to secure financing. I realize that it’s unlikely that the P&S can be dissolved as soon as I put my offer in, but it also seems unlikely that a buyer can take an indefinite amount of time to acquire financing.

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..., , Lexington, MA
Mon Feb 22, 2010
All good advice - go put in your offer.

Our attorneys can review your offer and/or purchase contract if you wish - a step most borrowers overlook and, as you can see from some of the posts, to their regret due to the hassles and expense some incur.

Feel free to contact me with more questions or any finacing scenarios.

Tom

Eagle Nationwide Mortgage Co., A subsidiary of Eagle National Bank
0 votes
Joe Arnao, Agent, Sanwich, MA
Mon Feb 22, 2010
Put an offer in and have a pre-approval letter from lender or proof of funds if cash. That way the seller will know they will not be getting into the same situation.
0 votes
Angela Dolber, Agent, Whitinsville, MA
Mon Feb 22, 2010
There is nothing wrong with putting in a back up offer on something. You can still look around for other properties as well while that offer is pending. Depending on the type of sale (owner vs bank owned or short sale), all offers should be presented to the seller whether or not they are considered on the table.

Who knows? Maybe you put in a higher offer and the seller then decides to consider your offer since the buyer hasn't come through on their financing. But in a P&S Agreement, there is usually a time frame for the buyer to commit to their financing anyway, so you may also want to check with the listing agent (or have your agent contact the listing agent if working with someone) to see what the deadline is for the financing commitment.

Good luck with your search. If you'd like any representation, give me a call or send me an email and I'll be happy to assist you further in the home buying process.

Angela Dolber
Prudential Prime Properties
508-826-8553
angela@pruprimehomes.com
Web Reference:  http://www.thedolberteam.com
0 votes
Patrick Thies, Agent, Anytown, IL
Mon Feb 22, 2010
There should be a deadline to obtain financing in the original offer. The seller can extend the time frame or if not then the contingency runs out and the offer is null and void. If you put in an offer the seller may not extend the financing contingency.

If you are working with an agnet, see if you agent can find out what's going on with the other offer and if the listing agent has an idea if it's going to go through or not. Couldn't hurt to put in your offer and see what happens.
0 votes
Jeffrey Cart…, Agent, Beverly, MA
Mon Feb 22, 2010
Hello,

The buyer can take as long as the the seller is willing to wait. If he sees a very attractive back-up offer on the table, he would have no reason to keep waiting for the original buyer who is showing no signs getting the all important "clear to close" from the lender. Of course the contract would need to run out before any other buyers could enter the picture.

If you have any questions, don't hesitate to contact me. I work with a team including mortgage consultants, attorneys that could further assist you.

Jeff
0 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Feb 22, 2010
No reason not to put in your back up offer at this point ,you have nothing to lose, so try it--good luck.
0 votes
Heidi Zizza, Agent, Framingham, MA
Mon Feb 22, 2010
However once you make a backup offer the seller may not continue to extend the financing contingency. Go for it! Nothing ventured nothing gained
Web Reference:  http://www.mdmrealtyinc.com
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