Foreclosure Friday: Financing
We weren’t expecting to hear from the bank so soon, but the very next day our agent called us with some news – turns out someone else made an offer the same day as us on the property! The bank decided that both parties needed to revise our offers and submit a ‘best and final offer.’ That meant that no further negotiation on the amount or terms would be possible. We needed to go in with our ‘best foot forward’ to get the home we so desperately wanted.
Without really knowing what the other offer’s terms were, we needed to look at what terms we could negotiate with. As I mentioned previously, we already factored in that closing costs would be our responsibility. But what else could attract the bank to select our offer? We decided to shorten the closing time from 45 days to 30 days. This allows the bank to get their money sooner. We also decided to go over the asking price by $1,000. Not much in the grand scheme but we were already paying out of pocket for closing costs. One term we did NOT budge on was a home inspection. I strongly encourage everyone who is looking to purchase a home to make offers contingent on a home inspection. You need to have confidence and protection during one of the biggest financial commitments of your life.
We submitted our offer and waited. And waited… and waited… with many bank owned properties, there is a process to getting offers reviewed and approved. Very close friends of mine waited over three months to hear back on their foreclosed property! Can you image that, three months of knowing? Thankfully we didn’t have to wait nearly that long, I think it was close to two weeks of waiting. And then we got the answer…
WE GOT THE HOUSE!
Stay tuned to find out what happens next – we thought getting the house was the hardest part, but wow were we wrong!