Survivalism & Self Sufficiency Topics > Homesteading and Self Reliant Living

we have an offer on the house. red flags?

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Have-Gun-Will-Travel:

--- Quote from: Morning Sunshine on December 13, 2010, 06:47:14 AM ---well, a few days after the original offer, there was an addendum.  they pushed out the closing date to "On or before December 17th" so that they could get their cash through homeland security.   :o
see all the money is offshore in foreign banks.   ::)

but there was no appraisal done, and we have heard NOTHING else from them.  My agent has been calling and calling their agent, and she either ignores his calls or knows nothing.  their agent is legit - she has worked with my agent a number of times over the past 10 years, but, as my agent said "she is a really nice person, but not a good Realtor."

My neighbor is a realtor, and when we were talking, she said there was a guy who has made offers on houses before, full-price, cash offers with foreign money, that is just jerking people around.  that he pushes out the dates and pushes and never does anything else.  hmmm, sounds familiar, yes?  she said she has only run into one herself, and seen 2 others, but this fits what she has seen.

so, there is a possibility that we close on Friday.  I do not think it is going to happen.  dh and our Agent do not think it is going to happen.  But, if it does, I think I can be ready.  I have spent the last 2 weeks cleaning and organizing the house.  the basement has been emptied into 2 rooms at the front of the house; the upstairs has only 2 dressers and our beds.  it is our offices and my kitchen that will be a pain.

meanwhile, on Saturday, we are putting up our Christmas tree.  :)

--- End quote ---


Don't knock  Foreign money, like I said my wife works for one of the largest home builders and 75% of their business (in our area)is
foreigners with foreign money and they are all cash closings.

Morning Sunshine:
yeah, no not knocking it by itself but with all the other weirdness, it is pretty fishy.  any ONE of those things would just be an oddity, but lots of them together is weird.

Mr. Bill:

--- Quote from: Morning Sunshine on December 13, 2010, 06:47:14 AM ---well, a few days after the original offer, there was an addendum. ...

--- End quote ---

One thing to remember, if things start getting too smelly and they send you another addendum: you aren't obligated to accept any change in the contract.  You can just say no, and if they don't meet the original terms, you're done (and you keep their earnest money).

My guess is that this is legit, and they're just used to doing things differently in their country.  But you won't know for sure until closing!

LvsChant:
If they request another addendum, you would certainly be reasonable if you increased the amount of earnest money required. For a $500 deposit, they have very little risk. They would be less likely to walk away if their deposit was $5000 held in escrow by the broker's agent. In the meantime, you should also continue showing the home to other potential buyers, imo.

reefmarker:
Oh yeah, what LvsChant said made me realize what made us dot every t and cross every i.  The house we were buying was not taken off the market just because we had a contract on it.  Our money was good and the mortgage seemed to be in good shape the entire time, but they really needed the house to move, so they made sure in the contract that it was clear the house was still available for showing.  They then ended up with another contract on it that would have sold the house to someone else if we could not close on time, and for more $.  This house was on the market over 6 months and the only 2 offers were one day apart (mine and one other, I was first)!

If they want another adendum (and you agree to it) I would make sure you add to the ernest money, put it in escrow, and state in writing that the house is going to continue to be shown up until closing. 

With the money in escrow you might want to check on what the legal requirements are where you are to get at the earnest money if they back out.  Some states say it is up to the escrow agent to determine who gets it and then they have to duke it out in court if there is a disagreement.  My agent said they basically would sit on disputed funds until one or the other got a judge to say turn it over, this makes the escrow agent the max amount of money (since they usually draw interest on the funds that they get to keep) and they don't have to deal with individuals demanding their money back.

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