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Down in Florida to purchase a home. Got caught up in all the REO hype. Found a nice home. Put in a cash bid and we got accepted by the bank.
The home had several offers in on it.
Our agent who is great and insists I have nothing to worry about, rushed, rushed, rushed us, because information from the selling agent to get everything signed. Our agent goes above and beyond and then some, but she was pressured just like us. She wanted us to get this home, as much as we wanted it cause she knew we loved it. We had no time at any junction, cause the selling agent kept telling us, she was going to take the next offer. We had to go all in, on the spot. In the orginal offer, (purchase agreement) we had a 5 day inspection period and clear contingency to out based on the report.
The next day, the selling agent contacted our agent and DEMANDED, we fork out $8000 in earnest money and sign all the banks addendums by 5 pm, or we were out. (EMC corp) I told them, we would, after they signed from their end, as the seller, (EMC) had not even signed anything yet. The selling agent expressed, that since she was dealing with a bank, it would take her 3 days to get their end signed. We were told the addendum was simply letting us know the home was AS IS and no repairs would be made and there would be no disclosures. Fine. WE STILL HAD THAT INSPECTION PERIOD AND OUT. WE STILL HAD AN INSPECTION OUT, over and over we were told this from our agent as well as the selling agent. It was just an addendum letting us know the home was "AS IS" and there would be no disclosures.
We vested over $1000 in this home to begin with. We wanted the home, but the inspection turned up loads of black mold, all over the kitchen, in and around the ventalation system. and numerous other locations.The inspector thinks it is the toxic variety. Needless to say, we want to walk! I should say RUN! To remedy a mold invasion in Florida is no less then $50,000!!
As I write this, I still do not know the answer to this, do we have an out or not? Read the inspection part below, as typed into this addendum! Now at first glance, you probably think it gives us an out. But read it VERY slowly. I think we got duped by all involved.
From EMC's addendum:
Seller's responsibility required by purchaser as a result of an inspection by the purchaser, lender or required as a condition set forth in the FHA/ VA commitment shall not exceed $______0_______. If the costs for any such repairs exceeds the repair limit amount, then EITHER (I) purchaser shall be responsible at its sole cost and expense for any amounts exceeding the repair limit amount and the contract shall remain in full force and effect without any abatement in the purchase price, OR (II) seller shall have the right to cancel the contract and return all earnest monies paid by purchaser, to purchaser with no further obligation by seller. Seller authorizes purchaser, at purchaser's sole cost and expense to make a complete inspection of the property within 7 days from the date of this addendum. If seller is required to make repairs any repairs, replacements or treatments to property pursuant to the provisions of this contract of sale, seller shall only be obligated for those items that purchaser has notified the seller in writing within 10 days from the date of this addendum which do not exceed the repair limit amount and to which seller has agreed.
Do we still have an out? Will the bank's attorney keep out money?
Last edited by Macattack44; 10-11-2009 at 07:16 PM..
Do you have a signed contract? Or even a signed addendum?
Yes, the bank finally signed it. After we did and they had our earnest $ on the way. And they stamped a big stamp on the original contract that states the addendum supercedes the original purchase agreement.
This is only one paragraph, we are not local real estate attorneys, talk to your agent. I think you need to send written notice of termination and earnest money return.
This is only one paragraph, we are not local real estate attorneys, talk to your agent. I think you need to send written notice of termination and earnest money return.
You spent $1000 on an inspection?
$500 on inspctions and $500 on an attorney, who is out of town LMAO about that! He started the title search work and had advised on the original purchase agreement. The addendum came afterwards and since we were rushed, he was not available to review it. So yes, $1000 in on it, plus $8000 in earnest money.
I'm going to assume your contract was a FAR/BAR AS IS? From the EMC Addendum, it appears to me that if the inspection was not satisfactory that you can cancel the contract and get your escrow back. This needs to be in writing within the contractual time period. You've probably lost the inspector and attorney fees.
I'm going to assume your contract was a FAR/BAR AS IS? From the EMC Addendum, it appears to me that if the inspection was not satisfactory that you can cancel the contract and get your escrow back. This needs to be in writing within the contractual time period. You've probably lost the inspector and attorney fees.
I'm fine with loosing the inspection fee and little bit in legal, as I avoided a mold factory. We just want to move on and find a new home. Our agent is an angel, going to ends of the earth to try and find us a great home in this tough market, but I'm sort of skiddish about signing a new offer until this one is done with.
I'm fine with loosing the inspection fee and little bit in legal, as I avoided a mold factory. We just want to move on and find a new home. Our agent is an angel, going to ends of the earth to try and find us a great home in this tough market, but I'm sort of skiddish about signing a new offer until this one is done with.
Without seeing everything, what you've posted is pretty standard - and I would say that your inspection is your out and earnest money will be returned.
I will also say that I don't think you were duped - most of what you've posted seems pretty darned standard operating procedure for purchasing an REO. And this might make you feel better - but even if you would've had your attorney review the addendum you couldn't have made ANY changes to it.
Without seeing everything, what you've posted is pretty standard - and I would say that your inspection is your out and earnest money will be returned.
I will also say that I don't think you were duped - most of what you've posted seems pretty darned standard operating procedure for purchasing an REO. And this might make you feel better - but even if you would've had your attorney review the addendum you couldn't have made ANY changes to it.
Thanks! And my feeling is you are right. But keep in mind, you all do this for a living. Buyers get to do this stuff, once or twice in a lifetime, not per day. I appreciate your opinion.
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