Trying to get earnest money back on REO
I've had an accepted offer on a 4 unit in WI since Dec.
Purchase price=$160k Fully rented gross rent=$2900, repairs of $5-10k needed, earnest money=$3k
I had a local bank lined up that was willing to loan 80% on appraised price as opposed to purchase price. We thought that the appraisal would come in over $200k, however, appraisal came in at $160k due to some repair issues as well only 3 units currently being rented. In general the bank just isnt' interested in this area due to there being a lot of other REOs in the area.
I had a 90% financing contingency in the offer. My bank plus all the other banks in town will not loan on the property unless I put 20% down. So I have been trying to get my earnest money back since I could not meet my financing contingency. The asset manager is refusing to sign the CAMR and is instead trying to offer me financing.
I am not interested in financing the property with the asset management company and want to move on to another property since this one is not as good of a deal as I once thought. I've already sunk $750 into an appraisal and inspection.
I've already contact an attorney to help. He is on vacation till next week but has experience fighting against the asset management company so I am willing to wait till he gets back. I was hoping to avoid spending $600 to get my $3k back.
Wondering if anyone has any other ideas or suggestions. I'm all ears. It's amazing how much you learn from finally jumping in and trying to do a deal as opposed to just reading about things.