Backing out of contract

[Dave Smih]

OK If you have a REO under contract as a wholesaler and things start to fall apart how can you back out within your inspection period to avoid loosing your earnest money check? what info do you have to provide to the bank and what if You dont have an inspector

[Jeff N.]

I backed out of a contract a few months ago after dealing with the properties HOA. The HOA contact was rude and short with me on the phone. Slept on it over night and decided that it was probably a sign of things to come so I faxed my broker a signed letter of my intentions. I just said I didn't like the HOA. My broker was a little upset and tried her best to convince me otherwise, but I didn't budge. I received my earnest check back pretty quickly without any hassle.

It was my first time having to back out of a contract and I felt a little bad about doing it, but at the end of the day its my money and I work too hard to get into a situation that is not in my best interest.