<p>jym, fingers crossed. Keep us posted.</p>
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<p>That is nothing! When we bid on our REO (bank owned), we were asked to have all money in the escrow in 7 days, including a weekend. We signed the agreement on Friday at around 6ish, and the money has to be in Escrow by the next Friday, or else, $100/day penalty each day thereafter, that 7 days including the inspections we have to make.</p>
<p>I think that is why we bought the house for the deep discount we have gotten.</p>
<p>Finger crossed for everyone.</p>
<p>vball,</p>
<p>do you have a backup plan if some thing goes wrong in that 20 days? I know what to do though.</p>
<p>Backup plan? No, we just have Plan A, which is that we won’t be able to close in 20 days and our Realtor will go to the sellers, maybe around Day 15, and tell them that we need an extension due to the backlog of applications in underwriting (or something else that sounds plausible). </p>
<p>If the seller chooses to take us to arbitration, the first question to the seller will be “How were you damaged?” All they can say would be that they’re having to pay 10 additional days of mortgage P&I, maybe taxes as well. We’re willing to come up with that in cash.</p>
<p>What would you do for a backup, artloversplus?</p>
<p>There is a remote possibility that the house you sold does not close or close late for a month or two, as an example. At that time you will have a problem, unless you have the money on the 20% already. At which time, you will need plan B, since you did not disclose to the new house owner that the deal is contingent to close your existing home.</p>
<p>The way I will do the plan B is to find some one will do a quick loan so you can close the new house and wait for the old house to close or being sold. This is call the bridge loan, some times the bank will do it, some times they won’t. There are some private lenders will do things like that, but it will be costly.</p>
<p>Oh ok, it’s true that I didn’t disclose that the purchase is contingent on closing my current home. What I meant when I said that my new mortgage is dependent on selling my current home is that my debt-to-income ratio would be too high to allow me to obtain a new mortgage without selling my current home. I won’t need a bridge loan for the down payment. If the sale of my current house doesn’t close, I have much bigger problems than a bridge loan would solve. </p>
<p>We’re due to close escrow on my current house on the 25th. I’ve signed all the papers and have a time scheduled to pick up the check that afternoon. The title company rep says everything’s ok. The buyers have scheduled the house to be tented for termites on the 26th. Naturally, there’s no guarantee that things won’t go awry. But these are calculated risks I’m willing to take to improve my changes of getting this other house.</p>
<p>I think the bridge loan will give you the 80%-100% of the money to buy the new house pending the other home being closed. It is going to be very costly, nevertheless. You need the Plan B, regardless how strong you feel about the buyer of your current home.</p>
<p>Never pickup a Check for the proceeds on sale the home, have it wired to your account. That big of a check, when you deposit it, even it is a bank check, will raise all kinds of problem with your bank.</p>
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Why would it cause any more problems than a wire transfer?</p>
<p>The last time we were in this position we couldn’t find anyone who would do a bridge loan. Luckily my parents were willing to sign a lease for the house and the bank was willing to honor that. It all worked out we managed to have the closing on the new house a few weeks before the old house sold so we could do some much needed fix ups. As I recall we didn’t actually need to get the rent from my parents even though the bank didn’t think we could afford two mortgages.</p>
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<p>A check is good only if the bank collects it through the system. When you have a check, more than your deposit in your bank, regardless the nature of the check, the bank will hold it for collection, that is normally 7 days. The bank is in no position to release the money, right there at your submission. For a small amount, they trust your account is good, anything bigger than say 5,000 you will be subject to hold for collection.</p>
<p>Wiring is not a problem, they will have the money when it arrives.</p>
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<p>They will most definitely put a hold on the check for 7-10 business days. We gone through this several times on several different accounts.</p>
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<p>We went through this with a refi recently. In the past, we were always about to get basically a no doc mortgage based upon our high credit score, high down payment and high income. Now, they are verifying every little thing, sometimes multiple times because the verification has to be within days of closing on the loan. So if anything delays the process, they seem to have to start over on some of the documentation.</p>
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<p>Ugh, now I find this out. We were given the check, and are now in a waiting period for it to clear. The funny thing is that the check we deposited, was drawn on the same bank. Why would they need to wait the whole 10 business days, or am I naive here?</p>
<p>We just heard that we’re the 2nd highest offer. Ours is cleaner than the highest offer, which apparently has some contingencies. The other offer was “significantly” higher than ours. The 2 offers are being sent to the seller in Europe. We’re willing to be a backup offer if the first falls through.</p>
<p>There are reasons I can’t have the sale proceeds wired but would prefer to not discuss them here.</p>
<p>Well, we had an open house on dd home. One family went through. They wanted a first floor laundry. Good luck with that as most houses in this area in this price range don’t have them. Sorry, feeling grouchy and sorry for myself.</p>
<p>Hayden…I think with the same bank it will take much less than 10 days to clear…i think bank of america will clear a same bank check in one or two days.</p>
<p>dstark, it is B of A, and they say it will take the 10 days. “Protocol.” Protocol schotocol.</p>
<p>vballmom - hope you win. Good luck.</p>
<p>onward, I know the feeling. One family went through our house, and really liked it. Then they found out there was a high voltage wire half a mile away, and they were afraid that when they have kids, they’d be born with birth defects. I had to laugh at these first time buyers, because we live in a major metropolitan area: I’d be surprised if there is any place in the entire state that is more than a mile from high voltage wires. It was cute, though.</p>
<p>^We’ve been told 10 days even when it’s the same bank. They won’t short-circuit the ‘protocol’. Fortunately, we’ve never need the money right away.</p>
<p>I’m shocked. That’s bs. I would call the bank manager and complain.</p>
<p>I bank at bofa…and I don’t remember a 10 day hold.</p>
<p>I used to work at bofa 35 years ago and it didn’t take 10 days then to clear. And we used to have to take rubber bands off bundles of checks.</p>
<p>I am pretty sure a friend of mine says he gets same day clearance. He is a good customer. 10 days is ridiculous.</p>
<p>Thanks Hayden, I needed the smile.</p>