Posted by Nate(DC) on June 25, 2002 at 23:09:45:
If you want to walk and are willing to lose your deposit, then by all means walk. The worst they can do is take your deposit and you are apparently okay with that.
If you wanted to see if you could get your deposit back, take your contract to a local real estate lawyer and see if there is an “out” somewhere…inspection or some other contingency that was never fulfilled.
But at worst, you’re out $1000. Next!
NT
Having Cold Feet Regarding Foreclosed Property - Posted by l.g.s.
Posted by l.g.s. on June 25, 2002 at 16:38:47:
Please bear with me, this post may be lengthy. My fiance and I have signed an Offer To Purchase and Contract of Sale on a foreclosed property. We are getting cold feet after a friend of ours looked at the property and reported astounding fees in repairing the pool and settlement problems with the house. We would really like to stop the process. Our bid has been accepted and we are waiting to see if we are approved financially, but we are really wanting to end this all now. We are starting out and do not have the extra cash to put in this house. We live in Florida, as we figure laws are different from state to state. Please help. Can we get out of this contract? We have put a $1,000 down payment towards the house and have no problem in letting the broker keep this money for their time on this case.
Re: Having Cold Feet Regarding Foreclosed Property - Posted by Jasonrei
Posted by Jasonrei on July 05, 2002 at 23:06:36:
I like what Dave T mentioned. You can let the prospective lender know about the defects in the property and maybe they’d just back out?
Re: Having Cold Feet Regarding Foreclosed Property - Posted by Dave T
Posted by Dave T on July 04, 2002 at 23:00:26:
What happens if you do not get approved “financially”? Does your purchase agreement state that your deposit will be refunded if you can’t get financing?
If so, then I might just wait it out and see if the lender refuses to make a loan secured by a property “in such bad shape”, or, for some reason you do not qualify for the financing. If this happens, then you should get your earnest money deposit back.
Does your purchase agreement have a home inspection contingency? If so, then get a home inspection done right away. If the repairs are too expensive to go through with the deal and the seller will not negotiate with you on making the repairs, then withdraw your offer based upon the inspection report.
If your contract contains language that limits the seller’s damages to the amount of your deposit, without further recourse, then as Nate says you have nothing to lose except your $1000.