home buyer contingenciesIn 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.

  • Property Condition
  • Financing
  • Title Conditions

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…]

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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…]

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818 Rue Montagne Campbell, Ca. a Seller’s Lesson

August 22, 2010
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Have you asked…Is my Agent Lying?

August 21, 2010

If you have to ask that question then the answer is ‘yes’,  your agent is probably lying to you. Notice I use the active ‘probably’? In this series of posts I hope to clear up a few of your questions by pulling back the curtain. How do I identify what is most important when choosing [...]

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Is The Real Estate Bottom Coming Soon?

August 18, 2010

posted on my trulia blog-last year Ok!  I am suffering from too many numbers, quotes and opinions.  Cap Rates, Cap and Trade, Carpet Tiles, Carbon and Tire Piles.   From Obama’s economic plan and Bush’s mistakes to Barney Franks…too much clutter! Maybe writing three offers and viewing nine homes today or the darn Starbucks at [...]

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Are Loan Modification Programs Weakened By the Same Banks We’re Supposed to Rely On?

August 3, 2010

This short and entertaining video will get your blood boiling!  No it’s not new.  It just seems to be missing from the news. See how the failed IndyMac was bought out and how the players behind the scenes are getting truckloads of cash!  YOUR CASH! Please, use the Share Buttons above and spread the word. [...]

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FHA Loan Costs are Rising!

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By Nick Timiraos writes for the WSJ Guest Post: The costs of getting a mortgage backed by the Federal Housing Administration are about to go up for some home buyers. FHA-backed loans are wildly popular with first-time buyers for an obvious reason—they require a minimum down payment of 3.5%, far lower than what private lenders [...]

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How Do Buyer Agent Rebates Help You Get Your Dream Home

July 27, 2010

So, what is a home buyer’s credit anyway? A home buyer credit is where the buyer of any home receives a monetary rebate.  Money!   Sometimes in the form of a check at the sign off when closing escrow.   Money you can use for whatever your heart desires. Home buyer credits come in three different [...]

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Summer Fun for Kids in Los Gatos

July 17, 2010

Need something for your kids to do this Summer?  In Los Gatos there are some great weekly activity camps.    I remember hot Summer days when I was a kid with nothing to do.   My Mom accused me of not using my imagination.  Who ME? Mom  would say ” ….there are lots of things to do.” [...]

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What’s taking so long to close escrow? Asked by homebuyers and sellers!

July 13, 2010

Congratulations,  you found the home of your dreams or the perfect buyer for your home for sale in San Jose.    If you are the home seller or the home buyer you have probably called your agent more than once and asked “What is taking so long to close escrow?” Your question has likely stemmed from [...]

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