How To Fill Out Offer To Purchase?
Okay I have a potential buyer for my FSBO property. I will probably have a lawyer draft the P&S if I get an accepted offer, however I want to be able to fill out the offer to purchase with the couple tomorrow night. Can anyone advise?
I am looking at $1000.00 earnest money deposit but what is typical to pay as an additional deposit on signing of the P&S?
How long should the offer be good for? 24 hours?How long until a P&S is signed?
Line 4 says the Deed with clear title shall be delivered by what date? proposed closing date?
Deposit to be held by my attorney? or My LLC that owns the properety...do I set up a special escrow account?
any typical additional riders?
Thanks for all responses! Once I get through this first one I should be fine for the next one.
anyone please?
I'm not sure how things work in your area, but in the NY area the Offer is pretty much a formality and doesn't get very involved. A lot of what you are describing should be addressed in the contract and not in the offer. The offer should simply say "I offer $xx.xx for your property at the following address" and not a whole lot more. Once you accept the offer, you will come up with a purchase contract which will specify how much earnest money the person will put down (Usually 5% to 20%), the estimated closing date and any conditions you both agree to.
As to who holds the escrow, it is usually held by either the title company or the seller's attorney.
Good luck
My simple answer. How on earth will the lender find out that he is renting it?? If you're worried about the mailing address, just have him get a P.O. box and forward all mail in his name to that box. Also, you can just call the lender and tell them that you have a mailing address different from your home address.
I think calling the lender and asking for permission is asking for trouble. I also wouldn't refinance. I usually wouldn't break the rules, but the bottom line is that he got a mortgage as a 2nd home so the lender already doesn't expect him to live there full time.
I say let sleeping dogs lay...
Just thinking outloud, but what happens if the loan does get called for breaking the contract? Then he refinances it to an investment property and pays it off. Sure the interest rates might be higher, but it is now more seasoned. Realistically I think the worst case scenario is that he is forced to refinance at a later date. Best case scenario is he keeps his current loan. Someone please correct me if I am wrong.
If it's some distance away, I'd sell it owner financed make money on the interest and stay in a motel!! LOL
The most imporatant thing with any mortgage is to make your payments on time, every month. Telling the lender that you will be using this as a 2nd home and then immedidately renting it may considered loan fraud since you lied on the application.
This doesn't seem to be the case here. The lender has the OPTION to call the note due. It is not illegal to rent the home out, nor will you go to jail. The lender's sole option is to start foreclosure and frankly a lender is not going to foreclose when they are getting paid ON TIME, EVERY MONTH.
GOOD LUCK