Backing Out Of A Bank Contract Without Loosing Earnest Money
If you back out of a bank contract during your inspection period because there are to many repairs, will the bank want proof of an inspection being done before they return your earnest money.
cjmazur,
That is actually incorrect. While most sellers or banks may not ask, I have come across a few banks who will ask for a copy of the inspection report to cancel the contract and return the earnest money, however this will always be stated in the contract addendums that the bank sends prior to executing the contract.
Look at your contract and addendum. If there is no requirement for an insprection report, then you are fine.
JS.
What has been working for me is the contigency in the contract that I DO NOT fund earnest money until 24-48 hours after BOTH parties have agreed to terms of the contract. Let me know if you need the proper wording and I will send it to you
ECG... Why not just post it here?
[addsig]
The one sure way of stopping everything is to declare Bankruptcy. Are the properties in your personal name or do you have one or more entities in title?
[addsig]
A loan modifcation through a reputable attorney could assist you in saving some of the properties, although it may not be done if you have filed the houses in a bankruptcy.
try to contact the banks that you want to negotiate with directly and try to go up the chain till you speak to a loss mitigation manager. Tell them you want to work out a plan to save your investment and they MIGHT be willing to work out a deal or payment plan with you.
Have you been making ANY payments on these properties? I am assuming that you have income coming from these investments or you would not be interested in saving them. Did you remit any portion of the income to the lenders in question? You can use all these arguments to negotiate with your bank.
Good Luck.
JS.