Colorado Springs, CO · Member since 2015 · 98 posts · 59 votes
I have found an unlisted property that I really want to buy. Seller wishes she could refi her balloon loan, but she can't - 3 rejections and counting. And the clock is ticking. She promissed me verbally that if she can't refi she'll sell to me. But now there's a cash buyer sniffing around....
I want to get this thing under contract ASAP. My idea: offer a contract to purchase, as-is, with my only contingency being that my loan comes through. In the contract is a clause that if seller does succeed in getting financing in her own name by X date, she refunds earnest money and keeps the property.
Any comments or opinions? The risk to me is that once the appraisal is done, I will have to eat that cost if seller gets funded. I can live with that.
Would a lender have problems with this sort of a contract?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
Set a date in the contract that ah would have to ge her refi by in order to cancel the contract. Give yourself 45 days to close after that date, order your appraisal then.
Colorado Springs, CO · Member since 2015 · 98 posts · 59 votes
10y
@Wayne Brooks, her balloon is due on 12/31. She's in denial and dragging her feet. Part of my goal is to hurry the loan approval process along so I am not at a disadvantage comparrd to a cash buyer.
Colorado Springs, CO · Member since 2015 · 98 posts · 59 votes
10y
My understanding (as a newbie) was that the appraisal was for the benefit of the lender, the home inspection for the buyer. When I've bought houses in the past, I selected and paid an inspector and received the report. I don't recall it being sent to the lender.
Anyway, my reason for saying as-is was to give the seller comfort that I'm not going to demand that she fix anything. If I need to do an inspection to satisfy the lender, I'll do it. But hopefully that could be done late enough that it comes after the seller's refi deadline.
Colorado Springs, CO · Member since 2015 · 98 posts · 59 votes
10y
So I spoke with the seller today. She said she should find out in 2-3 days about her latest refi attempt. She promissed that this was her last try, and if "the universe didn't want her to keep the property" she would sell it to me. We seem to have a pretty good personal connection so I trust her on that. Assuming the universe is on my side, I'm hoping to get a (normal) contract signed this week.