REO Contract went Dead

REO Contract went Dead

Our REO contract, that was signed & accepted on July 30th went dead in the water due to a negative roof inspection. The roofer gave us an estimate of
$ 4900, so we passed it on the RE agent, who prepared an addendum stating we would close if the bank dropped the purchase price by $ 4900 to cover the repair.
The bank came back & said NO, $ 0.00 allowance toward the repair. So we elected to walk. The RE agent sent over the cancellation of contract so the title company can send back our $ 2000 EMD.
Today we receive an email stating the bank will give
us a $ 2500 allowance. Funny how they changed their mind when they got the cancellation of contract form.
We responded with a No Thank You ... it's either all or nothing. We'll call their bluff & see if they come around, if not on to the next one ! Gary & Jill


It IS funny...

how, when you take something AWAY, people - yes, even corporations, etc. - seem to realize that it's not all about them.

And, to be able to have the attitude (the CORRECT attitude) of, "if not, we'll walk and move on to the next one" really helps someone not have to chase and beg.

Keep us posted!



"Make it an AWESOME day! (Who else is going to do it for you?)" - Mike Spillman

"As long as there is breath there is hope!" - Mike Spillman

Gary & Jill

You have done the right thing here for sure! With so many great deals out there we all have to know when to walk and say "Next!"
And as Mike said above, you have nothing to lose by walking....they have everything - being closing and getting a house off their books! And its a psychological strategy, really - when they realize its not worth it to you and you'll walk - it makes them even more anxious to work with you.
Thanks for the post and it will be interesting to see what happens next.

You're The Epitome Of A Pro ... For Not Poking Your Tongue Out !

Gary and Jill ~

I love every single story you reveal. There is a lesson in each one.

We already know there are more great deals on your horizon !!!

And even though you didn't poke your tongue out at the bank ...

It "did" happen that way, in the privacy of my imagination !!! Eye-wink

Good for you !!!

Like tellers do at the bank ... Holler this out loud ... Next !!!!!!!!!!

~ Sherri


Thanks for the comments. If we don't hear from the bank again, no problem, that just leaves more money for this rehab !

Great job Gary and Jill!!! I

Great job Gary and Jill!!! I love have they all of a sudden had a change of mind after you cancelled. I have a feeling they will spend the other 2400 instead of holding that property even longer Eye-wink
Best of luck

Thanks Richie

We think if they come back & agree to the 4900 off, we'll say no thanks, you'll have to knock off 6000 for the deal to go through. (lol)

Gary and Jill

Hi Gary and Jill. We went threw the same thing yesterday on a REO. After the inspection we felt there was a lot more repairs needed on this home. The Bank wanted 60k for this home we had offered 55k but our bank would not loan the money due to a mold issue. The agent for the bank told our agent that they would pay $2100.00 for mold abatement if we would pay 60k. Then our bank would give the loan. We agreed to pay the 60k it would be worth that to have the mold removed.

When we went out to the house for the inspection the mold guy had just left and our agent showed us were the mold had been wiped away with bleach. To me just wiping the walls down doesn’t remove the mold problem.

With all the other things in need of repair I told our agent to tell the selling agent if they want to keep this deal we would only pay 55k. Well they won’t take 55k so we signed cancellation of contract form. Now are agent is telling us we may lose are EMD. Even though we sent our counter within the time frame.

Steve and Veronica.

Steve & Veronica

We hope they don't keep your EMD because you agreed to purchase it at 60K after the mold abatement. If it wasn't spelled out what the abatement consisted of,(despite wiping down the walls with bleach really doesn't cut it) the bank might say you breached & therefore they are going to keep the EMD.They might use that 55K offer to keep the deal against you. Hope everything works out !

Gary and Jill

I will call the Coaches tomorrow and see what they have to say. We still have the loan exit, maybe our bank will say wiping the mold down was not good enough.

Steve and Veronica

Check with your bank

Check with your bank to see if they don't approve that mold abatement, you can walk due to finance contingency...

Thank You

We will call our agent tomorrow and see if the seller is going to release the money.

Have you guys ever ran in to a deal were the REO bank has an addendum contract that over seeds the state contract my agent used. The California state contract says 7 days for the inspection exit not to include Sat. and Sun. The bank addendum contract says 7 calender days and that is where we have an issue.

Steve and Veronica.

Hi Gary & Jill

You both made the right decision to let it go......the bank just wanted control of the situation. Theirs plenty of deals out there so keep the ball rolling Smiling

Everyone Can Make A Difference!
John A

Steve & Veronica

Yes, in all the REOs we have gone into contract the bank's addendum has been many pages longer than the RE contract. In fact on one 6 page RE contract, the bank had a 21 page addendum.

Thank You

Thank you for all of your input. I know this is your post I did not mean to make it about us. Good luck with your deal. We will let you now the out come of ours.
Steve and Veronica.

You're Welcome

No problem, it's all about helping & learning from each other ...

Gary and Jill

Great! I think that is great! keep them guessing. Usually it is the other way around. I love you guys, you are an inspiration to us all. What comes around goes around. They will probably counter with more if they want to do a deal. I don't blame you for passing. LOL.. Best wishes, Kevin


Thanks, your comments are greatly appreciated.

Gary and Jill

We are going to get our EMD back. Thanks again for your input.


Glad to hear everything worked out ... on to the next deal !