Home offer without contingencies when you need a mortgage

[Anonymous]

Waived all contingencies back in crazy buying competition in 2013. I was confident that we would qualify for the loan. The scary part is that the loan amount is dependent on the appraisal meeting above the settled purchase price. If it's lower, you're on the hook for the delta. One of the more stressful months of my life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you don't end up getting financing, you tell the seller. They can choose to keep your earnest money, but you don't have to sign anything releasing it. That keeps the house in limbo while mediation or arbitration plays out. They can sue, but that costs a lot of money and takes a long time. Realistically, they'll re-list and cut their losses

I'll keep your 50k earnest and let you pursue a hopeless case in court. Realistically speaking you'll lose. For me relisting means a hit to the sale price, the house has been tarnished in the eyes of prospective buyers, i'll relist after collecting the 50k.

Cool story. Guess you've never gone through litigation.

I have, which is why i say this a slam dunk breach of contract and misrepresentation/fraud case. You want to make your 50 k inaccessible, pay additional fees to a lawyer and lose? Be my guest1 I can still live in my house, or rent it or take a HELOC out and lose nothing. I have plenty of options!

[Anonymous]

Anonymous wrote:Do. Not. Waive. Inspection.

I guess you don't want to buy a house in a red hot market.

Pre-inspect, then waive the inspection contingency if there's nothing too major.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you don't end up getting financing, you tell the seller. They can choose to keep your earnest money, but you don't have to sign anything releasing it. That keeps the house in limbo while mediation or arbitration plays out. They can sue, but that costs a lot of money and takes a long time. Realistically, they'll re-list and cut their losses

I'll keep your 50k earnest and let you pursue a hopeless case in court. Realistically speaking you'll lose. For me relisting means a hit to the sale price, the house has been tarnished in the eyes of prospective buyers, i'll relist after collecting the 50k.

Cool story. Guess you've never gone through litigation.

I have, which is why i say this a slam dunk breach of contract and misrepresentation/fraud case. You want to make your 50 k inaccessible, pay additional fees to a lawyer and lose? Be my guest1 I can still live in my house, or rent it or take a HELOC out and lose nothing. I have plenty of options!

Cool story. You're so tough. I'm so impressed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you don't end up getting financing, you tell the seller. They can choose to keep your earnest money, but you don't have to sign anything releasing it. That keeps the house in limbo while mediation or arbitration plays out. They can sue, but that costs a lot of money and takes a long time. Realistically, they'll re-list and cut their losses

I'll keep your 50k earnest and let you pursue a hopeless case in court. Realistically speaking you'll lose. For me relisting means a hit to the sale price, the house has been tarnished in the eyes of prospective buyers, i'll relist after collecting the 50k.

And you will wait months for it all to play out and you may miss the best time to sell, not to mention possibly having to put your own plans to move on hold. But that is your right.

Right. the tough guy stance sounds good on DCUM but you'll be tied up for months. just release the EMD and relist.

[Anonymous]

Anonymous wrote:Do. Not. Waive. Inspection.

Enjoying renting!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you don't end up getting financing, you tell the seller. They can choose to keep your earnest money, but you don't have to sign anything releasing it. That keeps the house in limbo while mediation or arbitration plays out. They can sue, but that costs a lot of money and takes a long time. Realistically, they'll re-list and cut their losses

I'll keep your 50k earnest and let you pursue a hopeless case in court. Realistically speaking you'll lose. For me relisting means a hit to the sale price, the house has been tarnished in the eyes of prospective buyers, i'll relist after collecting the 50k.

And you will wait months for it all to play out and you may miss the best time to sell, not to mention possibly having to put your own plans to move on hold. But that is your right.

Right. the tough guy stance sounds good on DCUM but you'll be tied up for months. just release the EMD and relist.

This has nothing to do with tough guy stance, it's business. There is a reason why there is a contract, why this clause exists, and why EMD exists - it's for cowboys like you who jeopardize one of the most important financial transactions for a seller.

Once again, a buyer has no leverage and will miss out on the season, a seller in this market has time and plenty options. A house that is relisted after going under contract has already missed the "best time to sell" and is tainted. A seller usually ends up with a lower offer after relisting than the first round of offers, that's why cash offers are preferable and why EMD is held.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you don't end up getting financing, you tell the seller. They can choose to keep your earnest money, but you don't have to sign anything releasing it. That keeps the house in limbo while mediation or arbitration plays out. They can sue, but that costs a lot of money and takes a long time. Realistically, they'll re-list and cut their losses

I'll keep your 50k earnest and let you pursue a hopeless case in court. Realistically speaking you'll lose. For me relisting means a hit to the sale price, the house has been tarnished in the eyes of prospective buyers, i'll relist after collecting the 50k.

And you will wait months for it all to play out and you may miss the best time to sell, not to mention possibly having to put your own plans to move on hold. But that is your right.

Right. the tough guy stance sounds good on DCUM but you'll be tied up for months. just release the EMD and relist.

This has nothing to do with tough guy stance, it's business. There is a reason why there is a contract, why this clause exists, and why EMD exists - it's for cowboys like you who jeopardize one of the most important financial transactions for a seller.

Once again, a buyer has no leverage and will miss out on the season, a seller in this market has time and plenty options. A house that is relisted after going under contract has already missed the "best time to sell" and is tainted. A seller usually ends up with a lower offer after relisting than the first round of offers, that's why cash offers are preferable and why EMD is held.

Cash offers are not always perfect. If people are bringing cash in from another country there may be limits on how much they can bring in each week from their foreign bank. Before accepting this type of cash offer always verify how long it will take to get the money into the country and set realistic settlement date.

Same for cash offers that buyers can verify with available funds but fully intend to use a lender. With any cash offer, add a provision that reiterates that it is a cash offer and that no access will be provided for a lender's appraiser. Further add that obtaining financing was not part of the original contract and is a default under the contract. If buyer does not settle on the date specificed, buyer's escrow agent is directed to release the entire earnest money deposit to seller with no further demand. This way the settlement agent does not have to get the buyer's permission to release the deposit. The buyer is giving permission in advance.

[Anonymous]

Depending on your finances, you might qualify for a HELOC or a margin loan that would allow you to float the house if qualifying for a mortgage takes a few extra days.

There are also companies that specialize in loans for making cash offers. Basically, for a "small" fee they gamble that you will qualify for a loan in a timely manner, but not necessarily before your closing date. The fee is usually less than the premium you would have to pay to make a non-cash offer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you don't end up getting financing, you tell the seller. They can choose to keep your earnest money, but you don't have to sign anything releasing it. That keeps the house in limbo while mediation or arbitration plays out. They can sue, but that costs a lot of money and takes a long time. Realistically, they'll re-list and cut their losses

I'll keep your 50k earnest and let you pursue a hopeless case in court. Realistically speaking you'll lose. For me relisting means a hit to the sale price, the house has been tarnished in the eyes of prospective buyers, i'll relist after collecting the 50k.

And you will wait months for it all to play out and you may miss the best time to sell, not to mention possibly having to put your own plans to move on hold. But that is your right.

Right. the tough guy stance sounds good on DCUM but you'll be tied up for months. just release the EMD and relist.

This has nothing to do with tough guy stance, it's business. There is a reason why there is a contract, why this clause exists, and why EMD exists - it's for cowboys like you who jeopardize one of the most important financial transactions for a seller.

Once again, a buyer has no leverage and will miss out on the season, a seller in this market has time and plenty options. A house that is relisted after going under contract has already missed the "best time to sell" and is tainted. A seller usually ends up with a lower offer after relisting than the first round of offers, that's why cash offers are preferable and why EMD is held.

Cash offers are not always perfect. If people are bringing cash in from another country there may be limits on how much they can bring in each week from their foreign bank. Before accepting this type of cash offer always verify how long it will take to get the money into the country and set realistic settlement date.

Same for cash offers that buyers can verify with available funds but fully intend to use a lender. With any cash offer, add a provision that reiterates that it is a cash offer and that no access will be provided for a lender's appraiser. Further add that obtaining financing was not part of the original contract and is a default under the contract. If buyer does not settle on the date specificed, buyer's escrow agent is directed to release the entire earnest money deposit to seller with no further demand. This way the settlement agent does not have to get the buyer's permission to release the deposit. The buyer is giving permission in advance.

What are you talking about? You literally do a wire transfer to the settlement attorney and it’s done the same day.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you don't end up getting financing, you tell the seller. They can choose to keep your earnest money, but you don't have to sign anything releasing it. That keeps the house in limbo while mediation or arbitration plays out. They can sue, but that costs a lot of money and takes a long time. Realistically, they'll re-list and cut their losses

I'll keep your 50k earnest and let you pursue a hopeless case in court. Realistically speaking you'll lose. For me relisting means a hit to the sale price, the house has been tarnished in the eyes of prospective buyers, i'll relist after collecting the 50k.

And you will wait months for it all to play out and you may miss the best time to sell, not to mention possibly having to put your own plans to move on hold. But that is your right.

Right. the tough guy stance sounds good on DCUM but you'll be tied up for months. just release the EMD and relist.

This has nothing to do with tough guy stance, it's business. There is a reason why there is a contract, why this clause exists, and why EMD exists - it's for cowboys like you who jeopardize one of the most important financial transactions for a seller.

Once again, a buyer has no leverage and will miss out on the season, a seller in this market has time and plenty options. A house that is relisted after going under contract has already missed the "best time to sell" and is tainted. A seller usually ends up with a lower offer after relisting than the first round of offers, that's why cash offers are preferable and why EMD is held.

Cash offers are not always perfect. If people are bringing cash in from another country there may be limits on how much they can bring in each week from their foreign bank. Before accepting this type of cash offer always verify how long it will take to get the money into the country and set realistic settlement date.

Same for cash offers that buyers can verify with available funds but fully intend to use a lender. With any cash offer, add a provision that reiterates that it is a cash offer and that no access will be provided for a lender's appraiser. Further add that obtaining financing was not part of the original contract and is a default under the contract. If buyer does not settle on the date specificed, buyer's escrow agent is directed to release the entire earnest money deposit to seller with no further demand. This way the settlement agent does not have to get the buyer's permission to release the deposit. The buyer is giving permission in advance.

What are you talking about? You literally do a wire transfer to the settlement attorney and it’s done the same day.

We bought with cash and did not wire funds to the settlement company until three days before our 31 day closing. We had to wire the earnest money deposit in five days but not the balance

That may be a requirement of your state or of your seller.

[Anonymous]

Anonymous wrote:Be careful in listing no financing contingencies unless you have like 10% extra in liquid assets.

I have seen cases where 1-3 weeks before closing, mortgage firms announce that they need additional paperwork and will delay closing to process. Or ones that say that something has changed and that they can no longer do 80/20 or 80/15/5. I have seen ones where there is a complication and they need to delay closing. All of these cases, if you decline the financing contingency, you are still responsible for closing even if your lender is responsible for the delay. The point of declining the financing contingency to gain an advantage is that you are guaranteeing to the seller that you will close on the assigned date. If the guarantee of financing is not in your ability to control, why would you waive that protection? Do you really have the money to put down in the event that the mortgage lender decides that they can no longer meet the original closing date? Closing dates slip often for many reasons, the majority of which are outside of the buyer's control; hence the need for financing contingencies.

If you don't have the money to put up for the sale, I personally think that waiving the financing contingency is a big crap shoot and not one I'm willing to bank on. But you can gamble with your finances if you want. As long as you are willing to lose your EMD.

Calm down. There is 0.0% probability that you would lose EMD if your closing were delayed by a week, even if you did not have a financing contingency (which would typically be waived by that point at any rate). The buyer would have significant leverage, and the seller would acquiesce to a delayed closing.

[Anonymous]

We waived everything except financing with the house we bought last summer because we were buying first, then selling our old home, but the people who bought our old house waived everything, including financing. That meant they were able to close in two weeks which sealed the deal for us because it meant we could sell before the next mortgage payment was due on that house and before our first mortgage payment was due on the new house. Theirs was not the highest offer we got but it was worth it to us!

[Anonymous]

Anonymous wrote:We waived everything except financing with the house we bought last summer because we were buying first, then selling our old home, but the people who bought our old house waived everything, including financing. That meant they were able to close in two weeks which sealed the deal for us because it meant we could sell before the next mortgage payment was due on that house and before our first mortgage payment was due on the new house. Theirs was not the highest offer we got but it was worth it to us!

I should have mentioned, they were still getting a loan but they had all their ducks in a row and their bank assured us it could be done in two weeks.