I am unable to pay cash to purchase the house

I am unable to pay cash to purchase the house

Member since 2018 · 7 posts · 0 votes

Hi, I am the buyer with cash payment under the current terms (no conventional financing option). With the pandemic and my personal finances deeply impacted I may no longer have the means to pay for the house in cash. I would have to opt out onto conventional financing which will not only be breaching the contract but also take 60 days to close. I understand this "change of payment method" is frowned upon in the industry but given the current circumstance I am wondering how many people are having to go through similar situation? Let's say, even if the seller has a backup offer from another buyer s/he would have to have cold cash or go with the financing etc, so wouldn't it make sense for the seller to work with us rather than starting new with another buyer? If you could share your insights that would be much appreciated. 

0Reply
22 views

2 Replies

Jump to latestLatest
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    6y

    @Nikki O., I'm seeing some investment loans on hold right now. Talk to your seller and see if there's anything that can be done. Come up with all the options - including walking away from the contract - and present them to seller.

  • Real Estate Broker · Vancouver, WA · Member since 2018 · 168 posts · 120 votes
    6y

    Hi Nikki,

    In light of the current pandemic, everyone in the real estate industry has had to make changes to reflect the economic shift. Buyer's agents are requesting addendums to extend COE 30 days with an option for either side to cancel due to COVID-19 financial effects, sellers are withdrawing their listings in fear of exposure, and brokerages are recommending zero face-to-face interaction with clients.

    I mention all of that ^^^ because it's key everyone understands this is not business as usual for anyone. There will be odd requests, sudden changes, and fear-stoked decision-making. I wouldn't be surprised if you are now the only buyer in line for that property. 

    Express your new situation to the sellers and ask if they would be willing to sign a change of payment method addendum + COE extension. See if you can negotiate some sort of compromise if they kick-back, which would be understandable as well.

    Good luck! 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.