Reply to Home offer without contingencies when you need a mortgage

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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 [/quote]

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.
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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.[/quote]

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

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.[/quote]

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

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