What are my chances as a back up offer?

**Jaryce21** · 12-28-2010, 06:40 PM

hi there. I am new here but have been browsing this site for quite some time now and have finally built up the courage to post.

As a pro, would you mind giving me your input on my current situation?

I placed an offer on a home I love and with a broken heart, they've decided to take an offer that didn't ask for a closing credit.

this was my offer on the home listed for $208,999
bid $210K
down: 3.5%
closing credit: $8k
loan: FHA

this was their offer:
bid $205k
down: 0%
closing credit: $0
loan: NACA

The realtor ask to if I'd like to be the back up offer if it falls through. She mentioned that they were waiting for the buyers hardship letter and is also waiting on HUD.

- What does this mean for me?
- Do I have a chance?
- How do you feel about an NACA loan? Do they more than often approve in these circumstances?
- Is NACA better than FHA?
- How long do you think it will take to hear word if NACA goes through (i heard a few weeks, no?)
- Should I get my back up offer under contract?

Sorry for all the questions.

Thanks in Advance!!

**Chrisopher Moltisanti** · 01-04-2011, 09:33 AM

Having a back-up offer really depends on how bad one wants a property. One loan program vs another isn't about "which is better". Nowadays with all the bureaucracy, apathy, nepotism and red-tape and each loan program has their own 20 page addenda, who knows how many weeks it takes nowadays to close.

Your Realtor was correct in asking you so soon in the game for a back-up. You need to know your highest price point and don't deviate from it. If your initial offer, your Realtor feels may be beat, then have a back-up. Your Realtor should communicate your back-up as a verbal agreement.

Good luck.

**agentsranking** · 01-04-2011, 03:49 PM

I don't quite understand why they would be waiting for the "buyers hardship letter". Typically a "hardship letter" is used in a short sale situation and it is from the seller. The "hardship letter" is used to convince the bank that the client is in a difficult financial situation and a short sale is necessary.