by mrx on August 20, 2010
In the purchase contract your contingencies are those items that determine if you still like the home, accept the value and choose to proceed with the purchase. I listed the three types below. Their purpose is to provide a set time period for you, the home buyer, to investigate the property condition, title history and to secure financing.
The common contingency periods are 10- 17 days. The clock starts at the ratification date of the contract or when your purchase offer is signed and acknowledged by all parties.
These are the most common contingencies found in your purchase contract. They are not required , however your contract should have one or more of these contingencies built in as a stop gap should you have second thoughts. Which contingencies and their best use, is dependent upon the structure of your particular home purchase offer.
The following details their significance to help you avoid the most serious consequences.
Property Condition: This is usually based on reports like the home buyer property inspection, the termite report, roof report and, when applicable, the fireplace or masonry report.
You may order any number of inspections you deem necessary. Inspections for [click to continue…]
by mrx on August 10, 2010
Sad but True (true story) You might find the ending a happy one.
Terry (not her real name) called our office in tears. Her home was going on the county steps, the following day, to be sold to the highest bidder in a trustee sale.
She did have a little cash in the house in the form of equity. Not Fair!
Not a fun call by any measure. After living there for 25 years and raising her family, the lender was foreclosing. Not a rare story…I know.
This put the whole office in a buzz to solve Terry’s problem. I called my cash investors, others called attorneys. My ‘ace in the hole’ investor was in Europe the other was unable to put it all together in such a short time.
It was looking dire by the end of the day.
The only solution turned out to be bankruptcy…according to legal council! That’s not what this story is about though. This was the only way to halt the foreclosure and allow Terry some time to get a grip. After all, she raised her kids in this home, had no job prospects and was on the verge of a serious breakdown.
She needed to hit pause.
Terry was not devoid of responsibility and I won’t defend her position. She just needed help.
So, the only alternative was bankruptcy. The search began for an attorney to embrace Terry and get the ball rolling. This was done in an attempt stop the snowballing effect! One found, we began to focus on solutions.
Move ahead a few days…. [click to continue…]
In the purchase contract your contingencies are those items that determine if you still like the home, accept the value and choose to proceed with the purchase. I listed the three types below. Their purpose is to provide a set time period for you, the home buyer, to investigate the property condition, title history and to secure financing.
