Homesearch bid/contract need to cancel input needed

[Pat Goodyear]

I saw a house come on the MLS in Jan that seemed ideal for my family. I called my realtor and he said it was going to auction on homesearch. I was able to find it and it was being marketed as occupied. They had some nice pics from years ago and noted all these pole barns and garages on the 12 acre property. I reached out to the previous owner's son before bidding and he said his parents had already moved out. I bid early (mistake I know) and met reserve. About 2 hours before auction end another bid was placed and at the end I was bid up to $180,000. Final with buyers fee was $189k. Anyway, I finally met with the previous owner and saw the inside this weekend. I have alot of issues. He has used the property as a junkyard. There are old tractors, semis, vehicles, etc He took the pole barn to his new house. The house is 4200 square /feet and very 1980's poorly laid out. The in ground pool is ruined will need new liner and mechanicals. The house is in a flood zone. I spoke to a guy who was all set to buy it on a short sale last year for $175k and the bank cancelled it at 1hr before closing. He had an elevation survey done that I can buy for $250. It is possible I could get an exemption from FEMA for the house. Anyway I sent in $5700 Ernest money last week. Is there any way to get ut of this and get my money back? I was going to send them the picks of the drums of oil and garbage in hopes they would want to avoid an EPA complaint but their contract basically says they aren't responsible for anything. Should I back out now or wait and see if they have issues where they would need to cancel? Help.

[Pat Goodyear]

yes I did. Initially the REO was adamant that they were not negotiating or giving back my earnest money. I read the contract again and there was a clause we both initial that agreed to an arbitrator as binding. So I contacted the banks realtor and said I guess we had to go that route. Mind you I offered $170k to close the deal and they refused. A few hours later he called and said they didnt want to go to arbitration. And would refund my money. It went back up for auction. I put in a preauction bid of 104k which they turned down. It sold for 148k. To someone else.