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REO Financing Contingency - REO/Foreclosures

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Get Messages 02-03-2010 @ 9:35 PM                          
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Joined: Feb 2010
Hello everyone,

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.