All Forum Posts by: Roy Mitle

If you file an offer w/o putting in earnest deposit, are you allowed to back off later on and not be liable - legally or financially

Say you put in offer and the offer gets accepted but no money has changed hands. Before putting in the ernest deposit (3%) you back out of the deal. Are you still liable for the deposit?

I am looking to buy property which was foreclosed on last year. Some investor bought it and is now looking to sell it at the same price as last year - regular sale. My guess is that they found something which makes it not worth their time. 

The property is in good school district and the houses around it are significantly priced higher (~20% higher). So it will be a good rental place.

How do I get confidence that there are no unknown risks. One option is of course to put inspection contingency and then wait for that report. However, i'll be out of the 1K-2K to get inspection done. Known fixes are accounted for since I have gone inside the house and seen what needs to be fixed (carpet, paint etc).  Its the unknowns - leaks, termites, asbestos etc. that I want to get a rough handle on before getting it into contract.

ps: The selling agent is not returning calls. Its almost like a black box when you ask for disclosures/why being sold etc.

brandon 

the link doesn't work. It just shows up as an image. sorry

I just tried clicking on the webinar and it says it ended. how do i hear an archive.

Thanks for the inputs. Do you know how much more typically the rate is. I do plan to call some local brokers here but not sure if they give me accurate information.

What are the pitfalls with delayed financing. This is what I read in various threads

a) In delayed financing, the appraisal is typically more strict. So may not come into the right value

b) with delayed financing, u end up paying some closing cost. If you buy a 500K property with all cash and then do delayed financing, you will end up paying higher closing cost vs just doing conventional financing

c) you need to put higher cash upfront. So with a 500K property and assuming 25% down, I would have to put in 125K down. With delayed financing, I have to put in 30% down. (all this assumes non-owner occupied)

Are my points above correct. Also I want to make sure there are enough lenders offering delayed financing. I don't want to get stuck with just one lender offering this program and then have to be beholden to their quirks and monoply interest rates.

@Justin B. 

The reason is that in SF area the market is quite hot with all cash deals. I was thinking this will allow me to get a lower price etc. and then I can re-fi with a bank later on. 

Let me know if there are any other suggestions from folks.

One more thing to add it seems that fannie mae requires 6 month holding period before you can do cash out re-fi.

Did I get this correct?

https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html

Thanks for the information. 

However, when I had talked to my mortgage broker he had said that when you re-fi like this there is no way you get the good rate of 4.5% (in my example).  Am I wrong? From websearch, it seems a better deal than heloc in terms of interest rate.

Also is there a limit of how much cash I Can take out. Is it standard. for instance, from example above, can I take out 400K?

Suppose I buy property with cash (to get a better deal, quick close etc). Can I refi with a mortgage and get the same rate down the road?

Let me explain. Say price of home is 500K and investor mortgage rate is 4.5%. I pay full cash and get the house. 2 months later can I take a mortgage and get 400K back (20% of 500K is downpayment) and still get the 4.5%. In all of this, I am assuming price and interest rate hasn't changed for 2 months. Is there a time or financing limit to the above.