Can your seller still buy a home???

By
Mortgage and Lending with Prosperity Mortgage Company, NMLSR: 246016

 

 

Ok, picture this:  you finally got a contract on a home your selling.  It has been on the market for 8 months and an agent drops a contract on your desk that is exactly what you have been waiting for.  Of course your sellers are elated and everything is perfect...right?  Well imagine your seller now going to try to purchase with their proceeds.  The loan officer that gave them a pre-approval letter 8 months ago has some bad news.  Credit restrictions have tightened and your happy sellers cannot purchase.  Here are the two not so good options:  first, you go back to the buyers and tell them that the home is off the market - or go though with the sale and the sellers will have to rent untl they are able to buy.  I am so concerend that with all the market changes and conditions that there are going to be many sellers out there that will sell their home, only to find out that TODAY they don't qualify to purchase another one. It would be a great idea if you would talk with your sellers and just remind them that they should be updating their pre-approval at least every 30 days until their present home goes under contract. Hopefully, this will save some pain and suffering for those families that now won't qualify to buy another home at this time.  I have talked to some loan officers that have run into this unfortunate problem.  This can be a disaster. Don't let it happen to you or your clients.

Any comments???

Thanks, Jon

Comments (2)

Lanette Branch
RE/MAX Components - Fallston, MD
Bel Air, MD Real Estate Agent

Interesting subject...I've had at least 2 sellers who have been in this boat recently.  It was no surprise to either, though, since one was selling short and the other was selling to avoid foreclosure (amazingly this seller was not selling short!)

Both were just happy to sell and are ready to do what they need to do in order to be in a better financial situation later on.

Sep 26, 2008 05:35 AM
Jonathan Haug
Prosperity Mortgage Company, NMLSR: 246016 - Virginia Beach, VA
Mortgage Consultant

Thanks for the comment Lanette, I have a feeling we're going to see a lot of this until prices stabalize.  Sellers are making less and less on their transactions.  This puts them into a tough spot when they need to purchase a new home..they might not have any cash to put down.

Sep 26, 2008 05:43 AM