You are here:
- Home
- Real Estate
- Home Buying/Selling
- Buying or Selling a Home
- Pre-Settlement Possession Amendment
Buying or Selling a Home/Pre-Settlement Possession Amendment
Advertisement
Question
We have received an offer which includes a pre-settlement amendment. The buyer has proposed to pay a daily occupancy fee, will have hazard insurance on the house, and wants in almost 10 weeks before proposed closing. Buyer is offering some $ up front plus $ to be held by realtor in an escrow account. there is a clause which indicates if the sale falls through the escrow monies can be used for damages, etc. Buyer has a pre-approval from a mortgage broker but is asking for up to 40 days from agreement execution to make a complete written mortgage application. This sort of arrangement is not at all common in this area, though it is common in other places we have lived. We do have another offer on this property, but it not as much money. We are trying to decide what to do. Any suggestions? Thank you in advance for your assistance.
Hi Scott...
I can't tell count the number of RED flags on this offer!
1. Daily occupancy creates a tenant situation... do you want this to be a rental?
2. 10 Weeks to close? 45 days is standard.. FHA, Conventional even VA
3. Buyer $ ? how long to evict? damages incurred? sometimes no amount of money will cover this...if you loose your house in the process
4. Pre-approved from mortgage broker... have him go to a direct lender
5. 40 days from agreement to make complete mortage APPLICATION? broker said he is pre-approved - can't if you don't have an application...LIE
6. Not common in this area or anywhere in the world....
7. Less money offer... better terms ... take that offer
Your best instincts are correct.. this is a bad deal through and through... not sure what the scam is... but it is something...
Too many issues here... I do a lot of investments and sales... I would not touch this one with a 10 foot pole!
Good luck
Related Articles
Answers by Expert:
- Dick Dennis
- Jessica Bryan
- liznarr
- Hans Weber, Licensed Broker Associate
- Sue Bernstein
- Karyn Foley
- Dottie Worthington
- Jim Root
- Russel Ray
- Connie Wildasinn-Broker,GRI,RealtorŪ
- Todd C. Menard
- Diann Tonnesen
- John Hendricks
- Jay Denit
- Matt Heisler
- Lisa Webber
- John
- Laurie Stephenson
- Marvin G. Bobbitt, III
- Nori J. Muster
- Sharon Huneycutt, Realtor, Associate Broker, GRI, e-PRO
- CJ Brasiel
- Jeff Kessler
- Kathryn Hisert
- Emily
- Ted Lewis
- Kerrin Kostelic, FL Broker Associate, GRI, AHWD
- Tim Norris
Connie Wildasinn-Broker,GRI,RealtorŪ
Expertise
Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!
Experience
4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!
Organizations
NAR,
CAR,
WCR,
ABR,
e-Pro,
GRI,
BKBIA,
CHNA,SSG
Publications
Broker Agent Magazine
Long Beach Business Journal
Long Beach Press Telegram
Signal Hill Tribune
Grunion Gazette
All Experts
Zillow - Lead Agent - Advise Expert
Truila - Advise Expert
Education/Credentials
Broker-owner,
RealtorŪ,
GRI,e-Pro,
SSG-Short Sale Certified
Awards and Honors
Managing Broker for MetroCal Brokers. We merged my old brokerage with MetroCal this year, and we look forward to expansion and growth moving forward. We currently employ 30 Realtors and growing.
15 years running top selling agent in Long Beach, South Bay area California.
Top Producer 5 years straight Re/Max, C21, Realtyworld.
Past/Present Clients
upon request = or check out our website www.MetroCalBrokers.com and check the Testimonials section!
©2012 About.com, a part of The New York Times Company. All rights reserved.