House update

So the house we want is called a Short Sale. No, this doesn't mean they want to sell it in a shorter time frame. In fact, the opposite is often true. Short Sales typically take between 2-6 months to close.

A Short Sale just means that the seller could not afford to keep up the payments, and wants to sell it for less than what they owe on the mortgage. It is usually an alternative to actual foreclosure, but the bank that holds the mortgage must approve taking a loss on it. For example, this seller owes the bank $20,000 more than she wants to sell it to us for. The process is long and arduous, but if you're willing to wait, you can get a GREAT house for the price.

But here's where it gets a little tricky for us....we qualified for this house based on BOTH of our incomes. And Baby Girl is due at the end of July/early August. When the baby comes, I am going on maternity leave. Although I will still show as employed, my paychecks will show $0.00 for 3 months, as I don't get PAID maternity leave. We put our offer in at the end of May. Best case scenario, we will close on the house at the end of July/early August.

But if for some reason it takes longer than 2 months? We'll be screwed, because I won't be able to show an income until November. If the bank finally approves things in late August, September or early October, they will want us to close right away so they can get their money and be done with it. They won't be willing to wait another 60 days for us to close, and will likely take the next offer.

Worst case scenario, we don't hear back from the bank until the end of October or November. This would again be fine because we could probably stretch the closing far enough for me to be back to work and show an income.

Best case, we're fine. Worst case, we're fine. But anything in between??? We are SO screwed. We need this house to close before Baby Girl is born!!