Earnest money on bank owned property

Earnest money on bank owned property

By: S1aider Date: 10.07.2017

Hello, I am considering an REO that is being sold "As-is. Buyer shall have seven 7 calendar days from the date of the fully executed purchase contract to declare the contract null and void as a result of the inspection findings. After the seventh 7th calendar day, Buyer is obligated to complete the purchase or forfeit their earnest money deposit. Your email alert settings have been saved.

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Wed Sep 28, Good Morning Riskadverse, I will based my advise from what you have stated above. I would only presume that the addendum you are referring to is the contract you have signed generated by the bank on top of the real estate purchase contract which is the standard form or boiler plate form realtors used. The addendum supersedes any conditions stipulated on the Real Estate Purchase Contract.

If is states that you only have seven days to back out of the contract in case you find the home inspection unsatisfactory, this means that you have to give them a notice of the unsatisfactory home inspection and a release whatever form your state use to back out within seven days. A home sold as is does not translate into waiving your right to home inspection contingency.

The 7 calendar days for the home inspection is the home inspection contingency.

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Sold as is means that the banks will not negotiate any repairs, replacement , etc as a result of the home inspection. So make sure to be diligent and aware of this seven days. Do the inspection within 2 days from the date of acceptance so you can get all the results and report within the seven-day period.

However, as the lawyer said earlier, he could not give you an advice without seeing the whole contract.

So it is also my recommendation to follow his advice. Please note that I am just giving you an information based on what I read and there could be other conditions on the contract that should be reviewed to protect your interest.

Tue Sep 27, Riskadverse, typically you have 17 days to complete your investigations and then remove this contingency. The bank is chopping your inspection period to 7 calendar days. To answer your question; If upon completion of your investigations your findings reveal a major defect that is too costly to repair you can cancel and get your deposit back as long as it is within this agreed upon period of the 7 calendar days.

Dan Tabit , Agent, Issaquah, WA. Riskadverse, I'm not an attorney, so to truly minimize your potential risk, get this addendum cleared by one. As an agent who works with pre-printed forms daily and confronts new ones periodically, we rely on our "reasonable person" understanding of what the forms say. When we are uncertain, we get additional opinions. Without seeing the entire form, I would hesitate to advise you, but based on what you've written I would place the earnest money with a third party and have my decision made well in advance of the 7 days.

If there aren't other buyer's planning an offer, you can do much of your due diligence prior to writing the contract. Meet the neighbors; research the schools, area, crime stats etc. Have an inspector lined up to go in within a couple of days of making the offer so you can find out if there are major issues you don't want to address.

earnest money on bank owned property

Michael Emery , , Minneapolis, MN. The inspection addendum allows you to exit the contract within the 7 day window if you discover the home has too many defects or frankly whatever reason. When they say the home is being sold 'as is', if during the course of your inspection you discover expensive defects, they will probably not lower the price nor would they fix the defects in some rare instances they will - due to safety.

If you follow the rules of the purchase agreement and all the extra addendums etc, you should be able to get your earnest money back should you decide to not buy the home.

Just remember that the contracts for bank owned homes almost always favor the bank. So make sure you thoroughly read the contract before signing.

Jen Pfeffer , Agent, Charleston, SC. Is the addendum an "as is" addendum? Or does it just state that you're purchasing the home "as is" in the purchase agreement?

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They are 2 different forms, so I'm just wondering where the as is verbiage is in relation to the earnest money verbiage. If you can elaborate a little more I would be able to better answer!

Typically, if it's an as is sale, you wouldn't be able to get your earnest money back on the inspection contingency, however you may still have a financing contingency etc Getting earnest money back! Seller lied on disclosure, can I get Earnest money back? Can Wells Fargo back out on an exempted offer after they agreed to sell and cashed my earnest money check?

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earnest money on bank owned property

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