Joined: Feb 2010
I recently submitted an offer on a REO. They accepted and gave us the contract. My lawyer is reviewed the contract and he is not happy with it. Basically the financing contingency is given up once a commitment letter has been obtained. And from the commitment letter to the closing (which is 5 days, not very long I know) if the bank decides not to lend then I will be found in default and lose my earnest money. I've asked around and it seems that all REO sales are using contracts like this.
Has anyone purchased a REO with a financing contingency similar to mine in place? If so, how does do you cope with the risk associated with the purchase?
Any help with would be greatly appreciated.