Bank calls me to say there's a backup to my offer - Posted by Andy (TN)

Posted by Sailor on April 14, 2006 at 21:02:09:

Go ahead, be paranoid, & show up @ the bank when they open Monday. Have a polite face-to-face w/the person handling this matter & find out exactly what yet needs to be done & what they are doing to get it done. Be sure to ask, “Is there anyone else involved in this loan, because I’d like to meet w/him/her while I’m here.” Bring any relevant documents & state that you are ready to sign the papers that day to finalize your transaction.

I find that relying on semi-anonymous voices on a phone can be risky. I want folks to know who I am & that I am real. Eye contact, a friendly smile, & a good handshake sure can help you get to closing. Bankers often play games, & just as often they really don’t know what they are doing. Neither plays to your advantage, so take control of the situation Monday. Good luck!


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?

  1. Bank is shopping my offer, which is about as strong as I can get it (~76 ARV - repair costs).

  2. 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.

  3. 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.