For Charlotte NC home buyers with a house to sell (and successfully close) before they can complete the purchase of another home the question of contingencies often comes up, specifically a contingency on selling and closing your current home.
Along those same lines is a frequent home buyer question – Can I use a contingency on selling my home when offering on a bank owned property to buy?
The short answer: No.
Contingencies on selling your current home aren’t a match for bank owned properties, they’re just not something the banks will consider or allow. They’re simply not going to give you an “out” and take on the risk that your home doesn’t close.
So what’s a buyer to do when you have a house to sell?
- Get your current house sold, closed and done. Take it out of your home buying equation (this actually strengthens you as a buyer even if you’re considering a “regular” home)
- Consider doing a short-term lease for any potential lag time between when you sell your current place and close on the next home – this can also help give you a cushion for any painting/prep you may want to do before moving into the next house
- Focus on getting your current place under contract and moving toward closing – THAT is your biggest challenge right now
What not to do?
- My personal recommendation….don’t even think about or consider making an offer, ANY offer on a home till your current place is solidly under contract and talk that through with your agent!
- Don’t fall in love or think you’ll “try” on a bank owned home with a contingency on selling your current home. It’s not going to work, banks won’t accept those contingencies and unless you enjoy wasting your time….leave any bank owned homes on the back burner while you still have a house to sell and close. Look at them online all you want but don’t fall in love – they’re not within your reach yet!
Copyright©2011 by Diane McDermott, All Rights Reserved, “Home Buyer Question: Will They Take a Contingency on a Bank Owned Home?”
The content of this blog is the original content of Diane McDermott, NC Residential Real Estate Broker in Charlotte NC’s real estate market serving neighborhoods in Charlotte NC