REO property buying experience

[farbet]

What about this scenario:
You make and offer on a house on a short sale. The Bank(seller) approves.
Before Close of escrow and within the escrow peiod weeks a few houses(one opposite) same size, same street and within 1/2 mile etc comes on as REO’s and short sales at about 50K-70 K lower.
Will the appraiser pick these up?Is there ,other than walking away, to ask that the price be lowered to match comps ?
appreciate your replies

[NotCranky]

DDM
What has your agent told you?
Check your contingencies. It sounds like you are past your removal dates? People should know that they can have the loan contingency applied until the loan is funded so that there actually much less risk of this type of thing becoming and issue. Look at your RPA, hopefully you checked “the loan contingency shall remain in effect until the designated loans are funded.” In these times it seems imperative to do that. Maybe it makes the offer a little weaker but with lending all over the place it seems like You say take it or leave it. I would even consider writing an addendum,included withthe offer, that explains it further becasue the contract wording could be better. I am not picking on you just trying to warn others who might be reading.

If you cancel escrow you should try to get some or all of your money back but you really have to make that decision in accordance with the contract for the seller to be obligated . Are there any other grounds by which you can cancel? Usually those pass concurrently or before the loan contingency but if people have been sloppy there might be a way.

Are you interested in asking for an extension to get funded another way?

I had a person come to me once. Not a client of mine. They lost their earnest money deposit this way. It was clear the realtor and lender had abandoned them and failed to represent them with regards to the loan contingency. I wrote some letters which they signed and they got their money reimbursed from the supervising broker. Don’t know if that applies here?

[NotCranky]

DDM
What has your agent told you?
Check your contingencies. It sounds like you are past your removal dates? People should know that they can have the loan contingency applied until the loan is funded so that there actually much less risk of this type of thing becoming and issue. Look at your RPA, hopefully you checked “the loan contingency shall remain in effect until the designated loans are funded.” In these times it seems imperative to do that. Maybe it makes the offer a little weaker but with lending all over the place it seems like You say take it or leave it. I would even consider writing an addendum,included withthe offer, that explains it further becasue the contract wording could be better. I am not picking on you just trying to warn others who might be reading.

If you cancel escrow you should try to get some or all of your money back but you really have to make that decision in accordance with the contract for the seller to be obligated . Are there any other grounds by which you can cancel? Usually those pass concurrently or before the loan contingency but if people have been sloppy there might be a way.

Are you interested in asking for an extension to get funded another way?

I had a person come to me once. Not a client of mine. They lost their earnest money deposit this way. It was clear the realtor and lender had abandoned them and failed to represent them with regards to the loan contingency. I wrote some letters which they signed and they got their money reimbursed from the supervising broker. Don’t know if that applies here?

[NotCranky]

DDM
What has your agent told you?
Check your contingencies. It sounds like you are past your removal dates? People should know that they can have the loan contingency applied until the loan is funded so that there actually much less risk of this type of thing becoming and issue. Look at your RPA, hopefully you checked “the loan contingency shall remain in effect until the designated loans are funded.” In these times it seems imperative to do that. Maybe it makes the offer a little weaker but with lending all over the place it seems like You say take it or leave it. I would even consider writing an addendum,included withthe offer, that explains it further becasue the contract wording could be better. I am not picking on you just trying to warn others who might be reading.

If you cancel escrow you should try to get some or all of your money back but you really have to make that decision in accordance with the contract for the seller to be obligated . Are there any other grounds by which you can cancel? Usually those pass concurrently or before the loan contingency but if people have been sloppy there might be a way.

Are you interested in asking for an extension to get funded another way?

I had a person come to me once. Not a client of mine. They lost their earnest money deposit this way. It was clear the realtor and lender had abandoned them and failed to represent them with regards to the loan contingency. I wrote some letters which they signed and they got their money reimbursed from the supervising broker. Don’t know if that applies here?

[NotCranky]

DDM
What has your agent told you?
Check your contingencies. It sounds like you are past your removal dates? People should know that they can have the loan contingency applied until the loan is funded so that there actually much less risk of this type of thing becoming and issue. Look at your RPA, hopefully you checked “the loan contingency shall remain in effect until the designated loans are funded.” In these times it seems imperative to do that. Maybe it makes the offer a little weaker but with lending all over the place it seems like You say take it or leave it. I would even consider writing an addendum,included withthe offer, that explains it further becasue the contract wording could be better. I am not picking on you just trying to warn others who might be reading.

If you cancel escrow you should try to get some or all of your money back but you really have to make that decision in accordance with the contract for the seller to be obligated . Are there any other grounds by which you can cancel? Usually those pass concurrently or before the loan contingency but if people have been sloppy there might be a way.

Are you interested in asking for an extension to get funded another way?

I had a person come to me once. Not a client of mine. They lost their earnest money deposit this way. It was clear the realtor and lender had abandoned them and failed to represent them with regards to the loan contingency. I wrote some letters which they signed and they got their money reimbursed from the supervising broker. Don’t know if that applies here?

[NotCranky]

DDM
What has your agent told you?
Check your contingencies. It sounds like you are past your removal dates? People should know that they can have the loan contingency applied until the loan is funded so that there actually much less risk of this type of thing becoming and issue. Look at your RPA, hopefully you checked “the loan contingency shall remain in effect until the designated loans are funded.” In these times it seems imperative to do that. Maybe it makes the offer a little weaker but with lending all over the place it seems like You say take it or leave it. I would even consider writing an addendum,included withthe offer, that explains it further becasue the contract wording could be better. I am not picking on you just trying to warn others who might be reading.

If you cancel escrow you should try to get some or all of your money back but you really have to make that decision in accordance with the contract for the seller to be obligated . Are there any other grounds by which you can cancel? Usually those pass concurrently or before the loan contingency but if people have been sloppy there might be a way.

Are you interested in asking for an extension to get funded another way?

I had a person come to me once. Not a client of mine. They lost their earnest money deposit this way. It was clear the realtor and lender had abandoned them and failed to represent them with regards to the loan contingency. I wrote some letters which they signed and they got their money reimbursed from the supervising broker. Don’t know if that applies here?

[donaldduckmoore]

Rustico, here is my situation: We put an offer back on Jan 29. We signed the addendum on Jan 30 and we were told to close on March 3. We had everything ready before that day. The seller is Wellsfargo, it is an REO. They did not send out the contract until March 10. yes, the seller did file for extension. COntingency is 5 days after they signed the contract. Since March 10, we (me and my agent) are trying to figure out where the closing instruction is and since then, we are waiting to close. There is another problem. I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? How can I retrieve the money? Are you a lawyer? Can I get your service if it really cannot close on time and I need to back out? Thank you?

[donaldduckmoore]

Rustico, here is my situation: We put an offer back on Jan 29. We signed the addendum on Jan 30 and we were told to close on March 3. We had everything ready before that day. The seller is Wellsfargo, it is an REO. They did not send out the contract until March 10. yes, the seller did file for extension. COntingency is 5 days after they signed the contract. Since March 10, we (me and my agent) are trying to figure out where the closing instruction is and since then, we are waiting to close. There is another problem. I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? How can I retrieve the money? Are you a lawyer? Can I get your service if it really cannot close on time and I need to back out? Thank you?

[donaldduckmoore]

Rustico, here is my situation: We put an offer back on Jan 29. We signed the addendum on Jan 30 and we were told to close on March 3. We had everything ready before that day. The seller is Wellsfargo, it is an REO. They did not send out the contract until March 10. yes, the seller did file for extension. COntingency is 5 days after they signed the contract. Since March 10, we (me and my agent) are trying to figure out where the closing instruction is and since then, we are waiting to close. There is another problem. I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? How can I retrieve the money? Are you a lawyer? Can I get your service if it really cannot close on time and I need to back out? Thank you?

[donaldduckmoore]

Rustico, here is my situation: We put an offer back on Jan 29. We signed the addendum on Jan 30 and we were told to close on March 3. We had everything ready before that day. The seller is Wellsfargo, it is an REO. They did not send out the contract until March 10. yes, the seller did file for extension. COntingency is 5 days after they signed the contract. Since March 10, we (me and my agent) are trying to figure out where the closing instruction is and since then, we are waiting to close. There is another problem. I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? How can I retrieve the money? Are you a lawyer? Can I get your service if it really cannot close on time and I need to back out? Thank you?

[donaldduckmoore]

Rustico, here is my situation: We put an offer back on Jan 29. We signed the addendum on Jan 30 and we were told to close on March 3. We had everything ready before that day. The seller is Wellsfargo, it is an REO. They did not send out the contract until March 10. yes, the seller did file for extension. COntingency is 5 days after they signed the contract. Since March 10, we (me and my agent) are trying to figure out where the closing instruction is and since then, we are waiting to close. There is another problem. I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? How can I retrieve the money? Are you a lawyer? Can I get your service if it really cannot close on time and I need to back out? Thank you?

[NotCranky]

No sorry Donald I am not a lawyer. I am an agent.I was probably exceeding my capacity getting the money back for those people. I’ll plead good samaritian if it ever catches up with me. In any case the lender had choosen the agent who abandoned the client so there was so much leverage to press the abandonement issue. I just wanted you to think if a scenario like that really applies to you.

So it looks like the loan contingency expired march 25th. Do I follow?What is the current contractual close of escrow? hopefully it is before April 1 but I am afraid it is not or you would understand that your situation is O.K.

“I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? escrow?”

Fault due to the loan won’t matter because the contingency ramification of the contract doesn’t say…”unless there is a glitch”.If all your contingencies have been actively or pasiively removed it has to be the seller’s doing that causes the problem. Maybe a lawyer could interrpret it a different way so you might actually talk with one.

You have to find a way that the seller has failed contractually or hope they will be lenient. I don’t have any idea about the odds for the latter with this REO. Seems like you culd have some leverage with considering the delays but I really can’t say how it would playout if you don’t perform according to the conatract.

I want to say you should notify the seller of the situation by phone and in writing if you haven’t but I guess that is a judgement call.

[NotCranky]

No sorry Donald I am not a lawyer. I am an agent.I was probably exceeding my capacity getting the money back for those people. I’ll plead good samaritian if it ever catches up with me. In any case the lender had choosen the agent who abandoned the client so there was so much leverage to press the abandonement issue. I just wanted you to think if a scenario like that really applies to you.

So it looks like the loan contingency expired march 25th. Do I follow?What is the current contractual close of escrow? hopefully it is before April 1 but I am afraid it is not or you would understand that your situation is O.K.

“I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? escrow?”

Fault due to the loan won’t matter because the contingency ramification of the contract doesn’t say…”unless there is a glitch”.If all your contingencies have been actively or pasiively removed it has to be the seller’s doing that causes the problem. Maybe a lawyer could interrpret it a different way so you might actually talk with one.

You have to find a way that the seller has failed contractually or hope they will be lenient. I don’t have any idea about the odds for the latter with this REO. Seems like you culd have some leverage with considering the delays but I really can’t say how it would playout if you don’t perform according to the conatract.

I want to say you should notify the seller of the situation by phone and in writing if you haven’t but I guess that is a judgement call.

[NotCranky]

No sorry Donald I am not a lawyer. I am an agent.I was probably exceeding my capacity getting the money back for those people. I’ll plead good samaritian if it ever catches up with me. In any case the lender had choosen the agent who abandoned the client so there was so much leverage to press the abandonement issue. I just wanted you to think if a scenario like that really applies to you.

So it looks like the loan contingency expired march 25th. Do I follow?What is the current contractual close of escrow? hopefully it is before April 1 but I am afraid it is not or you would understand that your situation is O.K.

“I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? escrow?”

Fault due to the loan won’t matter because the contingency ramification of the contract doesn’t say…”unless there is a glitch”.If all your contingencies have been actively or pasiively removed it has to be the seller’s doing that causes the problem. Maybe a lawyer could interrpret it a different way so you might actually talk with one.

You have to find a way that the seller has failed contractually or hope they will be lenient. I don’t have any idea about the odds for the latter with this REO. Seems like you culd have some leverage with considering the delays but I really can’t say how it would playout if you don’t perform according to the conatract.

I want to say you should notify the seller of the situation by phone and in writing if you haven’t but I guess that is a judgement call.

[NotCranky]

No sorry Donald I am not a lawyer. I am an agent.I was probably exceeding my capacity getting the money back for those people. I’ll plead good samaritian if it ever catches up with me. In any case the lender had choosen the agent who abandoned the client so there was so much leverage to press the abandonement issue. I just wanted you to think if a scenario like that really applies to you.

So it looks like the loan contingency expired march 25th. Do I follow?What is the current contractual close of escrow? hopefully it is before April 1 but I am afraid it is not or you would understand that your situation is O.K.

“I got an 80-10-10 laon, which will soon discontinue because the lender does not want to have that service after April 1. If we cannot close before April 1, then i will not have enough money to buy. Is this my fault if by then I want to back out because I do not have a loan? escrow?”

Fault due to the loan won’t matter because the contingency ramification of the contract doesn’t say…”unless there is a glitch”.If all your contingencies have been actively or pasiively removed it has to be the seller’s doing that causes the problem. Maybe a lawyer could interrpret it a different way so you might actually talk with one.

You have to find a way that the seller has failed contractually or hope they will be lenient. I don’t have any idea about the odds for the latter with this REO. Seems like you culd have some leverage with considering the delays but I really can’t say how it would playout if you don’t perform according to the conatract.

I want to say you should notify the seller of the situation by phone and in writing if you haven’t but I guess that is a judgement call.

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