Bank calls me to say there’s a backup to my offer - Posted by Andy (TN)
Posted by Andy (TN) on April 13, 2006 at 09:09:23:
Should I be worried that the bank I’m buying a 2 family from, that is 3 payments behind, would tell me that there’s a backup offer? Whenever I ask what the holdup is, they cite something like “having an appraisal done”, “the owner won’t get back to me” and etc. I know appraisals don’t take 3 weeks, even if you are a smaller, local bank. I can think of a couple reasons why this would happen. Maybe you have more to add that I’ve missed?
Bank is shopping my offer, which is about as strong as I can get it (~76 ARV - repair costs).
Bank is financing part of the repairs cost for me as part of settlement (you know, one of those rehab loans that covers purchase amt. and repair costs where the rate floats with prime monthly). Could they have misgivings about doing that? I know it’s a very profitable loan for them, I have great credit and very steady income, I went full doc with them.
This is my first major rehab (but have worked extensively on a few others with other investors and my own house). The bank knows this, having asked, but I do know what I’m doing and have a competent, licensed and insured contractor and 8 man crew that I’ve used before.
Can anyone shed light on this process? I first contacted the bank at the beginning of March, got approved for the loan in the middle of March and have been waiting ever since, with a few contacts from the bank, in between, to tell me its still mine, they’re just waiting on this and that. The bank hasn’t foreclosed on the note, because I stepped in, didn’t even ask for much of a discount of the note amt. Maybe I’m just being paranoid, but I thought I’d seek your advice.