If you add to closing costs in your bid and it is not allowable you may have to forfeit  the closing costs and the price will not be reduced.

We represent ourselves.The title company is still working on the title so we do not have confirmation of a clean title yet.Our Question:If the option period expires before we get confirmation of clear title and THEN we find out there is a major, potentially unsolvable issue with the title, have we forfeited our Earnest money deposit?

If you do not dissolve the LLC, then you will continue to have to pay the $300 fee to the State of Delaware and for a registered agent in Delaware until your LLC is deemed to be forfeited.  

If nobody redeems, the excess funds are eventually forfeited and go to the county.A redeeming owner pays the taxes plus interest, and also pays interest on the excess bid, but only on a portion.

If you don't close just forfeit your earnest money.  

This is because TSP uses forfeited money (from people leaving before their matches are fully vested) to pay down the plan's expense.

And the bulk of that 5% risk is really whether or not we get a bit overexcited about multiple opportunities and run the risk of a cash flow squeeze and have to forfeit a deposit.

The advantage to this is: 1st - I let the tenant understand they are going to be "owners" here, they are responsible for the general maintenance and repairs of the property, we don't get the calls for leaky faucets, clogged toilets, etc. 2nd- In our agreement, the tenant forfeits any and all credits including rent credits and option fees if they are late on any month's rent payment (this one is subject to the "owners" discretion on enforcement - we have allowed an exception under specific and reasonable situations), this has proven to eliminate issues.Again, obviously this is late for Lisa's situation - but hopefully it will be some help to others in the future.

Or is it forfeit?

The new property manager, Service Specialties II got a hold of the original tenant & told her that we wouldn't file charges against her with Section 8 if she would clean up the property to our satisfaction, turn in all keys to the property & forfeit her security deposit as a liquidated damage.