HML and Cash offer

[Danielle Desaulniers]

Hi everyone,

My question is this: I am in the process of purchasing an REO (my first one), we told the bank it is a cash offer but the money is coming from the HML. Is that really a cash offer?
Also, the bank wants $4000 in earnest money and only a 7 day inspection period (that's 7 calender days not business days). Is this normal? I think i am going to accept, thinking that if the HML doesn't offer enough money for the purchase I will get my earnest money back by using the inspection report to back out of the deal. Is this really ok?
Thanks for you advice (in advance)