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.