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Updated about 9 years ago on . Most recent reply

Account Closed
  • Specialist
  • San Antonio, TX
351
Votes |
865
Posts

Got I an all cash offer with a couple of large weasel clauses

Account Closed
  • Specialist
  • San Antonio, TX
Posted

I got a offer on a house that I have on the MLS. The offer was in the ball park as fair as price. The buyers would be getting a good deal as well I would be paying most all closing cost. The problem is that the out clauses are in your face.

1. The buyer could get earnest money back if they can't get an FHA loan paying no more than 3.75%

2. The buyer could get all earnest money back if they didn't like the HOA covenants up to 21 days after the contract was signed.

The buyers are only putting $1000.00 earnest money down and my monthly debt service on the home is more than that and they still want a way out if they change their mind.

Am I being paranoid or is their a problem with this offer?

Most Popular Reply

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2,283
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1,102
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Charlie Fitzgerald
  • Lender
  • Las Vegas, NV
1,102
Votes |
2,283
Posts
Charlie Fitzgerald
  • Lender
  • Las Vegas, NV
Replied

Counter the interest rate floor to "that rate which buyer is credit qualified to obtain through FHA at par rates"; shorten the HOA review period to "7 days from receipt of HOA documents for review"; require a pre-approval (with income and credit review completed by lender) letter with the offer.

  • Charlie Fitzgerald
  • Loading replies...