They will keep the EMD.However, in the Fannie Mae addendum, there was a paragraph, drafted by their own lawyer, which states that either party may cancel the contract at any time if there is code violation blabla.I called the listing agent and ask him to check the addendum himself with Fannie Mae lawyers.

Making a subject to offer actually helps with a lot of things:  - You decide what purchase price makes sense for the property to cash-flow - You find out if the seller is interested - You find out whether repairs and update costs will make sense for the purchaseAnd at the end of the day, you're moving quickly, and as all of you said, it helps minimize wasted time for all parties

Contingency part : Is it better to put cash and cross out all mortgage contingencies or put mortgage 95% LTV etc and give myself 30 days “to obtain a mortgage aka finding a cash buyer” If I put cash they might ask about proof of funds ..and I also limit the time to find a buyer ..as attorney review period is only 5 days in IL.

In my experience with contractors, I have found several things helpful: 1) Have a third party act as intermediary to facilitate a meaningful meeting 2) Determine what exposures you truly have (legal, financial, etc.) and be clear in your own mind what you do and don't want to happen 3) Determine what leverage you have upon this clown.

If the borrower is well behaved, I'll board loan with FCI or another 3rd party servicer using the ABS platform with online and ACH capability.

The 1003 loan application used for all residential 1-4 unit properties asks the basic question "In the past 3 years have you been a party to any foreclosure or given any deed in lieu of foreclosure?"

I employ a 3rd party management company to manage my units.

How you wrote the contract and your state law may place other requirements for disclosure to the other (selling) party and/or public notice (recording), which an attorney may be able to help you with.Once you "sell" the contract, you obligation is transferred and it is no longer your contract.

Problem #2: The Ex-PM I would look at the contract and make my decision of how to proceed based on two things: 1) whether I think the PM even has the money to give me if forced to and 2) whether my contract allows the prevailing party to recoup legal and/or collections fees in case of a suit.

However i've picked up several nicer properties and have 6-8 parties per property willing to pay application fees to try and get a chance at the property.