Gave emd money want it back

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
4y

You typically don’t get your end back because you changed your mind. 

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    4y

    You typically don’t get your end back because you changed your mind. 

    4Reply
  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y

    What about if the financing fell through.

    0Reply
  • Que Tran
    Real Estate Agent · Scranton PA · Member since 2019 · 93 posts · 98 votes
    4y

    I agree, usually you won't get your EMD back, for simply changing your mind. And most foreclosures only allow cash offers, so unless your offer was contingent on financing, you can't request the return of EMD, for financing falling through.

    2Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    4y
    Quote from @Alicia Ayers:

    What about if the financing fell through.

    What are the auctioneer's terms? It all depends on the specific auction and the contract you signed. Terms vary greatly state by state, bank to bank, property to property and many auction properties are sold subject to no contingencies, so it's important to read the fine print. What does the contract say?

    1Reply
  • Tim Deimer
    Rental Property Investor · Member since 2021 · 29 posts · 34 votes
    4y

    @Alicia Ayers

    I don't have any good news for you, hopefully someone on here does. All of my auction buying experience was between 2008 - 2014 and they were mostly purchases from banks that are no longer with us. Most of the properties that I closed on were from secondary sales after a high- bidder couldn't close and the auction house would re-market to anyone who had bid in the auction. In those auctions I'd frequently get counter-offers if the bids were too low for the trustees to accept and that was the only way I ever got my money back. Those auctions were bid to buy and bidders who couldn't close disappeared from future auctions. I was bidding based on replacement value, on properties that had $0 cash flow and no hope of getting bank financing. I paid cash knowing I'd have to wait to make money.

    I don't know how much you overbid or how you planned to finance it, but I'd try to figure out how to maximize cash flow like the STR or house hack guys do it. If you can get more cash flow out of it, suddenly you didn't overpay. After enough time passes, they all look like bargains, you just have to figure out how to keep your name on the title until then. Hopefully someone on here has some better ideas than me. Good luck.

    3Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    4y

    It will depend on the terms of the agreement that you did when you bid on the house. Go back and look at it and see what it says regarding EMD.

    As to all of you saying you don't get EMD back, that's rarely the case in CA. When you put in your EMD you have inspection period, appraisal period, loan contingency, etc. The inspection period by default is 17 days on inspections. If anytime during that time a buyer decides to opt out, basically for any reason, they get their EMD back. At the end of inspections, buyers can do a Request for Repairs for things found in the inspection. The seller can agree to do them, or not. The sellers not even required to respond. However; even then, the buyer can cancel. If the appraisal comes in short, the buyer has the option of covering the gap between appraisal and loan with their own funds, asking the seller to reduce the price, or backing out of the deal.

    I would caution people to be careful what you are signing and make sure you understand the terms. Those are contracts, and when you sign, you're saying you will do what is set out in the contract. Do your homework. Know what values are. 

    0Reply
  • Tim Deimer
    Rental Property Investor · Member since 2021 · 29 posts · 34 votes
    4y

    @Karen Margrave

    I've never heard of ANY auction anywhere with those terms. Of course I've never even been tempted to bid in CA

    1Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    4y
    Quote from @Tim Deimer:

    @Karen Margrave

    I've never heard of ANY auction anywhere with those terms. Of course I've never even been tempted to bid in CA

    I wasn't saying at the auction those were the terms. I was stating that if he bid at an auction he needed to check the agreement that he signed and find out what the terms were. 

    The rest of the post was addressing all those on the thread saying you never get your EMD back. I was stating that in CA most often, you do. 
    1Reply
  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y

    I just re-read my contract and realized due to signature by phone my signature and my grandmother’s signature is on the document. The property is in my grandmother’s company name. Does this now make the document invalid.

    0Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    4y

     How is the property in your grandmother's name, are you saying you had a glitch signing with your phone and accidentally signed her name? What does the contract say about any contingencies?  

    0Reply
  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y

    No Steve. I handled all business for my family so it is my grandmother’s property but due to the contract being signed by phone my signature popped up. We must’ve both overlooked it but now once I’m looking the contract over noticed it.

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    4y
    Quote from @Alicia Ayers:

    I gave my end money to an auction site. Found out the house isn’t worth what I bidded for. What my emd money back. Any help?


     Thats not how auctions work . You bid the house up to what you thought it was worth . You now have buyers remorse . You changed your mind . Read the contract , 99.9% chance you lose the deposit . 

    1Reply
  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y

    Even if contract was incorrectly signed?

    0Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    4y

    Here’s how auctions generally work: if you fail to close in accordance with the terms of sale your deposit will be forfeited and the property will be re-sold at the risk and expense of the defaulting purchaser (you).

    So let’s say you put $10k down and you’re the high bidder at $100k. Then you realize that was a bad decision and refuse to go to settlement. The auctioneer will send you a notice of default. Your deposit will be forfeited instantly and you’ll never see those funds again, regardless of how the auction terms/contract was signed. Then the property will be re-advertised and re-offered for sale. Let’s say this time it sells for $50k.

    Result: you’ve already lost the $10k deposit. If it is worth the effort, then you’ll get sued for $50k deficiency (difference in purchase price between sale 1 and sale 2) plus the costs of advertising the 2nd sale.

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  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y

    How could a contract be binding and enforced if it was improperly signed?

    0Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    4y

    @Alicia Ayers I’m confused, so you’re hoping to buy the property for your grandma but accidentally signed your name instead? Or is it your grandmas property being auctioned and you’re trying to buy it?

    0Reply
  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y

    I’m assisting my grandmother in buying the property and signed my name by accident.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    You put the bid in, sent in the money accepting the contract.  The fact that you were buying it for your family and there was glitch in the signature likely won't matter.  You signed it in good faith.  Either close and sell the property again, or walk away and lose the money.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Quote from @Tim Deimer:

    @Karen Margrave

    I've never heard of ANY auction anywhere with those terms. Of course I've never even been tempted to bid in CA


    you guys are talking about two different things..  the AShland auctions in Baltimore  EMD is non refundable unless they cant clear title.. I have gotten 3 EMD from failed bidders.. Ashland splits it with us.. deposit is usually 5 to 7k..  then they put it right back up and sell it to the next party.. Not sure why folks bail it seems they dont have their money lined up or find out they dont like the property and dont follow through    Quite common in my experince in BALT city with Ashland auctions.
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  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    4y
    Quote from @Alicia Ayers:

    Even if contract was incorrectly signed?

     I am Not a lawyer, but I'm pretty sure that's fraud.  If it's not fraud, then the terms of the contract survive.  I don't think you can have it both ways.  There's no "Auctioneers hate this one secret trick," to buying at auction.

    I don't think anyone here know exactly what's going on -- most auctions I know require non-refundable earnest money and the sales are caveat emptor.  You usually do due diligence prior to the auction.  YMMV.  ¯\_(ツ)_/¯  Only you know what the contract says.

    I think you're well into r/legaladvice / ask a lawyer territory.

    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Alicia Ayers 
    If there is a disagreement on EMD, the only way to really solve it if you are dead set on getting the money back is to get an attorney involved. Otherwise, you can close on the property or walk away and eat the loss.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Quote from @Patrick Drury:

    @Alicia Ayers 
    If there is a disagreement on EMD, the only way to really solve it if you are dead set on getting the money back is to get an attorney involved. Otherwise, you can close on the property or walk away and eat the loss.


     and a lawyer could possibly cost more than whats at risk  the knee jerk get a lawyer resposnes are usually just that these cases do not have enough money in them to warrent a lawyer.. other than  a saber rattler letter ..  IE bluff 

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  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y
    Quote from @Jay Hinrichs:
    Quote from @Tim Deimer:

    @Karen Margrave

    I've never heard of ANY auction anywhere with those terms. Of course I've never even been tempted to bid in CA


    you guys are talking about two different things..  the AShland auctions in Baltimore  EMD is non refundable unless they cant clear title.. I have gotten 3 EMD from failed bidders.. Ashland splits it with us.. deposit is usually 5 to 7k..  then they put it right back up and sell it to the next party.. Not sure why folks bail it seems they dont have their money lined up or find out they dont like the property and dont follow through    Quite common in my experince in BALT city with Ashland auctions.

    0Reply
  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y

    It’s not Ashland.

    0Reply
  • Alicia Ayers
    OP
    Member since 2022 · 25 posts · 3 votes
    4y
    Quote from @Jay Hinrichs:
    Quote from @Patrick Drury:

    @Alicia Ayers 
    If there is a disagreement on EMD, the only way to really solve it if you are dead set on getting the money back is to get an attorney involved. Otherwise, you can close on the property or walk away and eat the loss.


     and a lawyer could possibly cost more than whats at risk  the knee jerk get a lawyer resposnes are usually just that these cases do not have enough money in them to warrent a lawyer.. other than  a saber rattler letter ..  IE bluff 


    0Reply
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