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Tobin Daniel,  in 75043

I have put a bid for my client on a bank owned property. During the inspection period bank has not made property ready for inspection (elect, gas,

Asked by Tobin Daniel, 75043 Wed Jan 27, 2010

water) as promised in the addendum to contract. before inspection period was up, we sent an ammendment to extend the closing date. It's been 5 calendar days and no response from bank. Now option period has ended. Another twist the title company has discovered a lien and the lien can't be clearn until the 3 weeks after initial closing date. Can the bank terminate my contract because the redemption period has not ended?

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Where is listing agent? Many times agent is the "go to" person off all these particulars. In some instance much easier push forward have buyer turn on which in a minimum expense, than wait for the bank

Lien clear in 3 weeks, nothing new in some instances foreclosure buyer may not take possession for days after closing all depends .

Bank may not terminate however could be delays in closing.

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1 vote Thank Flag Link Wed Jan 27, 2010
Tobin,

There are many factors in play here.
Does your client want the utilities to be turned on so they can do an inspection, or are you trying to use that as an excuse to get out of the contract? The standard TREC 1-4 contract has a provision that sellers must turn on utilities, however some bank addendums say utilities will not be turned on, or there can be a fee for de-winterization and rewinterization.
If they have not turned on the utilities and there is no other provision for them, then the seller could potentially be in default. You or your buyer would want to address this with them with the advice of your broker. In my experience, most REO owners do not want to sell a property to someone who doesn't want it. If you make clear your objections, in my experience they will allow you to terminate and return your earnest money.
It's tough to tell from your question though if you want to move forward or terminate.
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1 vote Thank Flag Link Wed Jan 27, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
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Your best contact is the listing agent. The listing agent can give you the details about utilities. There may be a reason that the utilities can't be turned on. Exposed wires, broken pipes etc. You buy a foreclosure in As-Is condition and the condition may be so bad that it's impossible to turn on utilities before some repair is done.
All liens are cleaned up prior to closing. There is a possiblity that the prior owner does indeed redeem the property. There is nothing you can do to speed up the process. The banks move at their own pace. If the inspection could not happen and utilities can be turned on, I'm sure the listing agent will work with you on extending the inspection time if that was agreed to in the contract.
1 vote Thank Flag Link Wed Jan 27, 2010
Thank you for your "best answer" to your question. Good luck with it all.
0 votes Thank Flag Link Wed Jan 27, 2010
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