The real question is... If I have an extension that has been approved and is good til Jan. 28,,, Can the seller kill the deal, if I do not give them a quick, uninformed answer?
Details: I have had a HUD home under contract for quite some time. The ARV is approx. $135,000, with very few repairs, maybe $5000 most likely less.. I have it under contract for under $75,000.The closing date has come and gone several times... There have been several extensions to the closing date on this deal, (at no charge to me), due to an issue with the local village and HUD. There was a demand, by the village, that the property had to be connected to the village water supply by Sept 22, 2014. My offer was accepted after that, on Oct 4, 2014, or so. I asked HUD to connect the water as they were required to by the village. They paid the permit fees and the right of way fee to the village and gathered up bids to connect the water... We are dealing with potentially frozen ground and LOTS of trees 30-40 of them, 100 ft. setback. The latest extension has been approved and is good until 1-28-15. Today HUD came back with a decision NOT to connect. HUD does not want to make the water connection to this property. In lieu of paying for the repair, they have offered me a $9,000 credit, with the condition that I need to assume the cost to connect the water, post closing. This is awesomeÃÂ¢ÃÂÃÂ¦ I believe I can get the water connected for less than the $9000, I think, ButÃÂ¢ÃÂÃÂ¦ I still do not have an end buyer to assist with the transnational funding I am using for my POF.
I am working with several people that have told me, when I get the water issue resolved, they want to talkâ¦..? I feel like I have been trying to steer a parked car and now it is starting to move! Yeah! Forward motion!!!!!!!!!! HUD is trying to get me to make a fast decision to continue or not... As in, like today or they will cancel the deal. Since I have not had proper access to the property, I have not been able to get a solid quote for the water connection. Can they do that?
I believe this is a viable deal, but I do not want to blow it by not responding fast enough to suit HUD... Anybody want to make some money? LOL Any and all thoughts are welcome.
Sure they can. If you read thru their addendums, they can cancel at any time and simply return your EM.
Yes this is how HUD operates. Your options at this point are:
Say No and HUD will cancel the deal and you have a reasonable but not garunteed chance of getting your $500 earnest money back
Say Yes and you will have until the end of your current extension period expires on 1/28. If you do not close by then, you will lose your earnest money
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