How to back out of an Auction contract?

[Jeremy Anan]

Hello BP!

I recently bid on an online auction property and finished as the highest bidder. I increased my EMD to 10% of the price within 24 hours. I've then signed the contract. Unfortunately, the property didn't appraise, and I need to back out of the contract/run.

There is a financing contingency that reads “Financing. Buyer’s obligations under this Agreement are NOT CONTINGENT upon Buyer securing any financing in the purchase of the Property. If Buyer chooses to seek financing, Buyer may do so at Buyer’s sole risk and expense by submitting a mortgage application to a mortgage lender or mortgage broker within five business days from the date of this Agreement, but the failure to apply for or secure financing in the amount or time or terms desired by Buyer shall not excuse Buyer from timely performance of all obligations under this Agreement. Owner agrees to grant access to the Property for appraisals sought by Buyer, but if the Property is leased to one or more third parties Owner agrees only to request that the tenant(s) grant such access; this Agreement is NOT CONTINGENT upon the conduct or results of any appraisal.”

I am exploring ways to get away from the contract and not lose my deposit.

Thank you