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I was in escrow right before the fires. Now the home is a total loss. What are my options?

by ahuillet214 from Foster, Oregon. Sep 29th 2020 Reply


Chris Barry (TheLoanDoctor)
#44 ranked lender in Oregon - 45 contributions

Are you the buyer? Or the seller?

Sep 29th 2020
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

If you were under contract using a standardized real estate contract, most state's Standardized contracts require the seller to deliver the home in the same condition it was in when the contract was signed. If you are the buyer, you would likely be released from the contract if the property has been destroyed. You should also be entitled to a refund any of your earnest money deposit you provided. If you wish to proceed, you would need to enter into re-negotiations with the seller on a new contract. If you are the seller... Again, in most states with a standardized contract, you could be required to rebuild and deliver to the seller, or accept that the seller can likely cancel since the home was destroyed, but in most cases, a mutual cancellation with no penalties can be negotiated, leaving the buyer free to resume looking for another home and the seller to work on his/her next step. Start with your real estate agent and your title company for guidance. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ www.ApplyYes.com 480-889-9000.

Sep 29th 2020
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,409 contributions

The standard purchase agreement says the house must be in the exact same condition as the day the contract was signed on the day of closing. As the house is a total loss, all purchase contracts are essentially null and void.

Oct 1st 2020
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