Besides, I don't really have to pay by cash; with 20% down or so and my credit is good, I can always get a mortgage should I go for another deal from Fannie Mae.
Also, there seems to be plenty of foreclosures in Atlanta that do not disfavor cash buyers. This is a buyer's market, there seems to be enough fish in the sea, and I can live without this property.
Again, I appreciate all your helpful advice.
Extend your closing date so you don't have any unexpected issues. I would think that 10% EM deposit would buy you extra time to close. 60 days is what I would stipulate with that kind of money on the line.
You can always close earlier than the contract date specified.
Read the fine print as well concerning the per diem penalty if closing is delayed - typically on you.
Thanks to the response. I don't know if you have the pleasure of reading Fannie Mae's unbelievably one sided addendum, if you did, I think you will agree with my concern. I am aware that this is a foreclosure, and by buying a foreclosure, I am willing to buy it as is and is willing to abide with their addendum. However, in item 2b of the addendum, it said, "If the closing does not occur by the Expiration Date, or in any extension, the Agreement is automatically terminated and the Seller may RETAIN any earnest money deposit as liquidated damages." There is no mention about who causes the closing not be happen, it could well be the seller that fails to close and I still stand to lose my earnest money. If it is only the $2000 that I originally offer, then yes, I will take that risk. But, we are talking about $24,000, which to me, is a lot of money. It has nothing to do with how serious I am to buy the house. And why is it that someone who takes out a loan does not need to show his/her seriousness by putting down 10%?
In Florida, we have an inspection period and the buyer can walk away for any reason within a specified period of time. Get with your agent and ask them to explain in detail your obligations, timelines and "outs" if you will. Then it is decision time on your part.
Hopefully you have an agent - and if you do they need to be spoken to because they're not covering your back. If you don't have an agent and are going into this unrepresented....I guess good luck!
what I had in my cash offer. I had given them proof of funding which I think is enough to prove that I have the funds. Isn't that better than someone who got loan approval but may or may not eventually get the loan? I always thought that even if cash buyers are not treated better than buyers with loan, they should be treated as equal.
Yes, those addendums are very one sided. I would HIGHLY recommend you run the addendum by your counsel and make sure you aren't agreeing to things that would not be in your best interest. Some REO companies are willing to make small adjustments to their contracts. Don't be afraid to ask!! Good Luck!