I think I am about to get an okay from the mortgage company on my first short sale. ;D If that is correct, my next question is what if I can’t find someone to buy it from me. I don’t have the funds to purchase it. What if I can’t find a buyer by the time closing comes around? Am I in trouble? Thanks!!!
Seems like I am always in trouble for something… :
You need to have a buyer’s list & contact them. One place to start is the people who buy houses @ foreclosure auctions, since they buy in cash!
you need to act soon to get financing ready or buyer ready. The contract you singed is legally binds you to purchase unless you can find something in the contract that you can get out.
Last resort would be to find something in inspection period and terminate the contract. Since you have been working on the SS, you should try to find other people who can invest and share the profit with.
Good Luck,
DFW
I don’t know what contract you use. I’m in Texas & use the standard TREC contract. For SS, I give the Seller $1 option money & extend the option to the closing date. That’s my out.
I thought about that, but will a lender accept an assignable purchase option contract instead of a purchase agreement?
Regards
Just don’t have the seller sign the PA until price is decided… 9 in 10 times they don’t care.
If your trust is low enough you are worried they are going to go to another person to sell then you need to build a better relationship.
Chase
I think rgchamb was referring to an assignable purchase option contract, not a purchase agreement. Also, I do not think that I have the luxury of having a blank purchase agreement signed because I could lose my license.
Regards
No I didn’t say a blank PA. A filled out PA with the buyers signature only, not the sellers. That leaves no liability if you cannot buy it.
I want to set the record straight to avoid confusion. I was talking about a purchase contract that is put out by the Texas Real Estate Commission (TREC). In that contract, there is a termination option that gives the buyer the unrestricted right to terminate the contract. In no means did I intend to insinuate that the contract I use for SS is assignable. The option $ paid just provides an out. Hope this clears things up.
I’m in Texas as well and I understand what you mean…Thanks!