If an Appraisal came in low while in escrow,what to do?

[SD Realtor]

No worries Farbet. Let them know that even if they have passed the contingency period, if they have not actually SIGNED a removal of contingency document then they are still in luck and can back out with no loss of deposit.

SD Realtor

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

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