I could use some honesty here.....

[BeachBaby]

I've never posted in this forum before, but I have to know:

My boyfriend sold his condo, outside Chicago.....settlement is scheduled for this Thursday, March 20th.

I sold my home, Philly metro/south Jersey....settlement is scheduled for this Wednesday, March 19th.

If the markets tank tomorrow, do our settlements tank too? (I have no idea who the lenders are in either of the transactions)

Granted, our buyers have been approved, settlement packages put together and waiting for settlement day - but can all of that be trashed depending on tomorrow's numbers?

If anybody is well-versed in this area of economics, I would truly appreciate any knowledge you can share with me. THANK YOU.

[DemocratInSoCal]

1. It Would Depend Upon Banks Involved In Your Transaction

Also, if the condition of the buyer changes substantially, and they can no longer close on the money, the deal could collapse due to no fault of yours.

[Warpy]

2. Not necessarily

Lenders are nervous, now, and are not passing rate cuts along to borrowers. However, if the buyers of your house and condo are financially stable, the loans should go through and papers should pass.

Don't ask me about that six months from now, though. It might be a whole different ball game by then.

Tomorrow's crash is likely to be followed by a midweek rally as institutional buying is triggered by a set point in the S&P.

Don't trouble trouble until trouble troubles you, in other words. If the buyers are solvent and employed, everything should be OK.

[selador]

5. "tomorrow's crash"

can we get a little perspective here?

the dow futures were down almost 300 pts at one point.

currently 208.

we do not KNOW there will be a crash tomorrow. a 2 to 300 pt gap open down while SUCKY from a psychological perspective for people who are net long does not necessarily imply a crash. for pete's sake, there was a down gap not too long ago larger than were we are now, and the day ended UP over 200 pts. that was a very profitable day to buy the down gap fwiw.

i am saying this as a person who trades infront of a bank of monitors every single day.

these predictions are getting pretty common, and it's getting a little silly.

we COULD od anything tomorrow (close up, close down, close basically flat). i don't know and neither do you.

i'll respect the tape, play the high probability, high expectancy plays and save predicting for nostradamus.

[Warpy]

6. Right, some Asian markets were down 6+% earlier

and have recovered to -4+%.

I'm glad to see the futures have gotten a little more reasonable as well.

Don't forget the 1929 "crash" wasn't that big a deal, either. It was the next three years of one step up, two steps down losses that were the big deal.

That's what I expect to continue for a while, although not to the extent it did back then. Margin buyers will be shaken out again.

I'm not selling anything and stuffing my futon with the proceeds. That's just plain nuts.

However, for some folks out there, this IS a crash, folks who are seeing net worth in both housing and the market evaporate leaving them nothing but their debt.

[selador]

7. great post

i've been selling strength since christmas, so i am hardly a bull.

but i do think the pessimmism is getting overwrought here

i posted a # of stats the other day that reference relative probability based on historical similar #'s in terms of bullish %age, consumer confidence, etc. that actually made a decent case for some bear market snapper rally action.

keep your powder relatively dry, pounce on value when it presents itself and respect the tape.

panicking never makes money

[nashville_brook]

3. by "settlement," you mean "fund the sales" of the property, correct?

if the funds don't come thru, the sales don't happen. you either get the money or you keep your property. it's called recission, if "the check bounces."

in broad strokes, unless the mortgage companies funding the sales go under, then you're okay.

[nashville_brook]

4. real estate attorney boyfriend just said...it's not unheard of that mortgage co's

decide not to fund at the last minute. this can happen if the buyer shows up without the deposit. he's dealt with closings where small mortgage companies' checks actually bounced. but, mortgage companies RIGHT NOW aren't refusing to fund because of market conditions.

[BeachBaby]

8. Thank you.

I truly appreciate you all for responding.

I guess all I can do is cross my fingers and hope that this week ends with two successful settlements.

Hell - we feel lucky that our properties even have contracts! :)

Thanks again.