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If your contract is only for the amount the sellers owe, they still have a lot more cash to come out of pocket. Someone has to pay the realtor fees. Someone has to pay the escrow fees. Someone has to pay the title insurance. Someone has to pay the recording fees... etc...
Is the seller paying these fees or are you paying these fees? Paying off a loan amount isn't the only thing to consider. During a short sale, the bank covers all these expenses.
On the note about rent, you don't just take the rental average in the area. I don't know a single agent that does that. The first thing you do is take the buyer's new mortgage (including taxes and insurance) and ask for that, as the rent-back should only be to make the buyer whole.
If you're a cash buyer, you only need to think about taxes and insurance if you really want this to work out, because those are the only two things to make you whole. If you're renting somewhere else, maybe ask for your rent to be covered since you wouldn't have that rent payment if you were in the house.
Don't worry about the rental market because it's not a rental home. And if you want the house that bad, are you really going to let $1000-1500 get in your way?
Its not a SS anymore. There is no SS addendum in our contract. They planned on selling it AS a SS and listed it for $360. We are paying $400k for the house. Obviously they didnt excpect their home to sell as a traditional sale and they also thought they would have a lot more time to stay in the home before it sold. They dont now. We want a June 1 close. Now they need a few days to *think about what they want to do*. i am sympathetic to their situation but its not really their decision to make anymore. Makes me wonder if their REA really explained to them what they were signing off on
I wouldn't do it. If they are that cash poor how will they afford to move? Are you in a tenant friendly area?
If they lived in a home without paying the mortgage for months I can see them doing the same with rent. That one month you agreed to might turn into several as you go through the eviction process.
It's also extremely unlikely that the bank currently holding their mortgage would allow this to happen, since short sellers are explicitly prohibited from making a profit when the house is sold.
I'd definitely get a RE attorney in any case. If they couldn't foresee that the house might sell in a substantially shorter timeframe than what they had anticipated, perhaps it's time to look for another house; a written ultimatum (you have ______ hours in which to accept or decline this offer) will motivate them and stop them from stringing you along.
If they refuse to sign that document, find another house.
It's also extremely unlikely that the bank currently holding their mortgage would allow this to happen, since short sellers are explicitly prohibited from making a profit when the house is sold.
I'd definitely get a RE attorney in any case. If they couldn't foresee that the house might sell in a substantially shorter timeframe than what they had anticipated, perhaps it's time to look for another house; a written ultimatum (you have ______ hours in which to accept or decline this offer) will motivate them and stop them from stringing you along.
If they refuse to sign that document, find another house.
But its not a SS at the price we bought the house for. We cant really look at any other houses right now while under contract....can we?
But its not a SS at the price we bought the house for. We cant really look at any other houses right now while under contract....can we?
Some real estates agents have already responding, other folks are missing the point.
You are letting emotion run away with you. You need to decide what makes economic sense for your situation.
Lots of people do delay occupancy to allow the seller to secure a new residence / clear out. If you can afford to allow this happen and the necessary agreements can be put in place this ought not be a "big deal".
The fact that the seller is in finacial distress ought to be part of the overall decision that you need to weigh -- if they sense that the market is picking up maybe they will try to wait until things turn around and they actually can sell at a better price...
If you cancel this deal you will likely forfeit your earnest money, you need to be discussing the options with your agent.
I know its been a few days. As the buyer it is 'safest' and in your best interest, to have possession the day and time you close and own it. Under the circumstances you have described, I foresee nightmare with eviction route if the current owner were to rent back after closing (and other potential problems too!).
They haven't been paying the mortgage, so technically they should have had an
extra thousand or so each month?
The wife is sick and I am speculating here that this family has medical bills up the wazzu. We are not going to rent back. We are closing on the date we all signed off on. The sellers have found anther place to live and are moving out May 1 anyway.
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Need to get focused!
