Desperately need advice on a deal which is on life support/dead.

Desperately need advice on a deal which is on life support/dead.

Investor · Blue Bell, PA · Member since 2014 · 9 posts · 1 vote

This is for a short sale which I have under contract.   The terms state I would have the financing within two weeks which will run out end of next week.  I am in the middle of the process of taking out equity in a rental home I have and use that to come to the table for the short sale house. 

The bottom line, the lender who I was working on the refi is falling through and/or not doing what was told and keeps stalling on the dates.  I should mention I am a semi new investor and looking for loans that are no looks or not dependant on W2's.

Could anyone advise on what I could possibly do to save the deal.  There is quite a bit of equity in this short sale home which I dread losing especially due to some of the guidance I received from the parties in play (lender/s and realtor). 

I would be more than willing to provide numbers for further review if/as needed. 

Honestly, I am not even sure of the options at this time.  Just let the contract expire?  Somehow work with a great lendor who can work some magic?  "trade" the deal, go in with someone? 

Any input is greatly appreciated.  At this stage, I've waited for a long time to get through the short sale/bank resolutions and just want to do the right thing and hopefully get something for all the time and effort thus far.

Please let me know if you have any questions or if any additional information is needed...

Many thanks!
   

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  • Specialist · Westlake Village, CA · Member since 2010 · 1k+ posts · 781 votes
    6y

    If you need to close right away here are the options as I see it.

    A)Use a hard money lender

    B) Private Lender

    C) Joint Venture with another investor with cash

    What is a summary of the numbers on the deal?

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    6y

    @Kate M. Does your contract say it is null and void if you don’t have financing approved within 2 weeks OR does it say the seller has a right to cancel if you don’t?

    Either way, it probably doesn’t matter as you’ve got a couple of months at least before closing. If you think you need to, just get an extension.  And don’t think you’ve got a great deal locked up yet....just because the seller signed a contract doesn’t mean the bank will agree to the price.

    Has someone determined how many and the type of liens/debts are on the house? This is important to know before making an offer as you may want to structure your offer differently.

  • Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
    6y

    Does the property require any rehab? Hard money could close within the timeline, but it would best suit you if there is a rehab component to the loan.

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