Navigating Contingent Offers in a Softening Real Estate Market

Hello to the real estate community! I hope you are having a great week, and I’m excited to share insights from the front lines as we adapt to a shifting market. We’re seeing more contingent offers now that the market has softened, bringing new challenges as we enter a different phase of real estate life.

Last week, I had a contingent buyer/client who was in escrow for 30 days with a completed appraisal and full approval, but they canceled their deal because they didn’t receive the expected amount from the sale of their property. Disappointed, they quickly purchased a less expensive property a few days later. Contingent offers can be tough on sellers, which is why many agents dread contingent offers!

This week, we tackled a three-leg contingency where our loan was leg #2. As we neared the end, leg #1 was running late in closing, prompting agents to request that we accelerate funding.

My first Question is always: Is the escrow or title company the same? The answer was no.

Next Question: who are the players involved? I know the agents and Escrow companies, and we have worked with both many times!

Then, it was time to ask my funding Manager. She was confident that the money would arrive after funding due to our relationship with both escrow companies. Since we were familiar with all the players and both were local, we funded concurrently, and everything went smoothly. Had the escrow been from Orange County, it would have posed a challenge; however, the local connection made the difference.

Many agents prefer to control escrow and title selections; however, in contingent transactions, having the same escrow or title company for all parties can simplify the process. If that’s not an option, Augusta Financial should be your lender of choice so we can save the day! Honestly, we should be your go-to lender every time!

Stay tuned for more market insights, and let’s navigate these changes together.

Please let me know if you have any questions or if a client needs my guidance. I’m just a call, text, or email away.

📞 Cell: 661-714-6258

📞 Direct Line: 661-291-2222

📞 Office: 661-260-2970 ext. 2222

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

I hate to write this, but I’m going to try it one more time. Rates are at their best levels since April 3rd! Every time that I do this, rates tick up. Screw that, I am not afraid of rates going up just because I write something. I am not scared to talk to a pitcher throwing a no-hitter, either! I will open an umbrella inside the house and even step on an occasional crack, and I know that won’t hurt my Mom’s back!

Loan Programs

• We do loans on Non-warrantable condos!
• We offer 12-day escrows for pre-approved buyers - Conventional/FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the high 5’s and low 6’s.
• Conventional loans up to $806,500 are in the low to mid 6s.
• High Balance Loans from $806,501 to $1,209,750 are also in the 6’s.
• Jumbo loans above $1,209,750 are in the 6’s and 7’s.
• Bank statement loans are available with 10% down again, with larger down payments in the 6’s ++.
• Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement!
• 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000.
• Private Money lenders offer Hard Money Loans with 35% down.
• No Ratio Loans require 30% down.
• DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down.
• Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go!
• 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates!

Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits.

**Good News for Condos:**   

Cornerstone –  It looks like it will be coming off the Fannie List shortly!

American Beauty Village East – Off the naughty list!

Canyon Country AKA Canyon Gardens - new insurance provided -

American Beauty GARDEN – YAY!

American Beauty Classics – Terrific

**Bad News for Condos***

Parklane Condos – Simi Valley CA  – Insurance is adequate!

Park Northridge HOA  – 19533 Rinaldi – Critical repairs and deferred maintenance

MARIPOSA – Another setback! Now, they have 19% delinquencies to be added to an already too-high deductible on their insurance.

The full state of California naughty list has been added to MikeMeena.com! See the link below:

https://mikemeena.com/non-warrantable-condos/

Let me know if you hear anything new about condos or townhouses.

I am available every day if you need anything.

📞 Cell: 661-714-6258

TEXT: 661-714-6258

📞 Office: 661-260-2970 ext. 2222

📞 Direct Line: 661-291-2222

📧 Email: Mike@AugustaFinancial.com

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!