If they apply and I don't choose them...for any reason...then the application fee is forfeited.

If you actually put down a minimum amount, and not the full $75K, you can back out, forfeiting whatever amount you did actually pay at the time of the auction.

After sending a letter of intent to forfeit deposit, her unpaid dues (rent, late fees, court filing fees, unpaid utilities, etc.) total a little over $9,000.

Some are even putting remarks on their listings that if you contact them you forfeit your offer.That's the story with the bigger REO agents and with big banks.

-I responded two days later via email that we would allow them to terminate if they forfeited the deposit, and paid two months rent.  

Once you pull your contributions out your forfeit that opportunity. 

Were were ready to offer cash for keys, so i made them sign a paper stating they were breaking their lease and forfeiting their Security deposit with the place in swept condition.

Not a big deal if it’s turn key.Also offer fast close - 30 day.Lastly, any money in escrow - would be forfeited to seller immediately.All of these things make the offer even stronger than 2000$ above asking.

In the worst of cases, if a major litigation claim takes place, it is likely (but not automatic) that both PM and owner would be named as co-defendants.

If they don't buy they forfeit the accumulated credit.How does Dodd Frank / SAFE effect this transaction?