All Forum Posts by: N/A N/A

Hi all,

Just curious here. I've run into a few agents recently that have been a pain to work with (i.e., not fast enough, incorrect info, etc). For the sake of curiosity, are these agents mandatory in working with the bank and their property? Is it possible to send offers in directly to the REO department without an agent acting as middleman?

I'm open to all opinions and suggestions here, as I'd like to make the process more efficient than it currently is.

Thanks,

Vic

Thank you all, and Ryan! I appreciate the clarification. I did end up calling the private lender, and you hit it right on the head - they said it's best to reference it as third-party financing for cases like that. And so I did. I had the contract modified, and then sent the lowball offer off, hoping it'll reach the decision maker on one of his good days... ;)

Thanks again. Let's see where it goes from here.

Take care,

Vic

Thank you for your reply, Ryan. Would you mind taking a second to explain it in more detail please (for a dense person like myself)? Especially this part:

"put in a contract stating third party financing with no financing contingency."

Can I pass off a HM loan as financing, rather than a cash purchase? Also, would banks still be willing to sell based on financing (I was always under the assumption that they wanted cash only more often than not).

If I can call it financing, technically, than that'll definitely help me.

Thanks again for your help,

Vic

Hello everyone,

I've got a great opportunity to purchase a rehab house at 50% ARV, and have already been preapproved by a great hard money lender that'll front money for purchase and rehab up to 75% LTV. Everything seems ready to go. I've talked to the agent in charge of the property, and told her I'd like to make an offer on the property. Since I'm working with a HM lender, it'll be an all cash purchase.

Now, the issue is this: she states that if I'm purchasing the property through conventional financing, that my earnest money deposit is roughly 1% or so, as expected. But since I'm paying cash, that it'll likely be around the 10% mark (which kind of blows my mind). In other words, I need to send in a check for $8k, in order to make an offer for the house.

Why is this so? Is this normal? And why would the bank not be doing everything possible (like a lower earnest deposit) to have their property purchased via cash, intstead of financing?

Any help would be greatly appreciated. I need to get the offer in soon, as it's getting looked at very frequently (I'm sure many of you know the pressure).

Thanks again,

Vic