Offer Contingencies And Closings Question

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I have a question for you those of you that send out quite a few offers. My problem is not getting my offers accepted; it is the time it is taking to get them closed out. I have an offer in on an REO right now through Fannie Mae. I put the offer in almost a month ago, I have the cash to close yet they are still dinking around and won’t get me a closing date. Can I put something in my future offers, such as must close within X amount of days or be subject to a per day penalty? Or that the purchase agreement is void if not closed by such and such a date? Is the situation normal? I can’t wait a month for each property to close. Any suggestions?

Thanks
Joe
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Comments(3)

  • ray_higdon1st November, 2004

    I've never heard of the buyer putting in such contingincies or penalties, interested to hear if anyone has done this before.

  • dnvrkid1st November, 2004

    Well I think you could put whatever you want into a purchase contract, but good luck getting it accepted.

    It has been my experience that you need to KISS the agreement (Keep It Simple Stupid), or people would rather wait for another offer.

    If the deal is good enough, why isn't it worth the wait?

    If you have been making any kind of offers you will find a "clean" contract at a lower price usually beats out an asking price contract with tons of contingencies almost everyday of the week.

    Most people are willing to pay for someone to solve their problems, not create a bunch more by agreeing to a bunch of contingencies.

    Just my humble opinion.

  • joefm263rd November, 2004

    Thanks for the replies! A for the wait, well timeis money. My problem is I have a crew waiting to get in to do the rehab on it and another investor lined up to take it rented out as soon as I can get it done. I am newer in the business so my funds are limited. I can't get into another house until this one is closed out, rehabbed and resold. I was just hoping htere was a way to get fannie mae to not drag thier feet on the deal. IS it common to ask for prepossesion to be able to do repairs and get it rehabbed before closing? is this wise?

    Thanks

    Joe
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