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Experience with HomePath properties? Need some advice!

In looking over the real estate purchase addendum that we are required to sign with the offer, I am wondering if there is a grace period if the offer is accepted to back out? Is a failed inspection the only way we can back out or do we have the option to do so if we decide the renovation cost is too much, or if we simply get cold feet?

Thanks in advance!
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August 21 - US
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Answers (7)

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Thanks all for your responses. We decided not to move forward but really appreciate the time you took to answer!
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August 22
With Fannie Mae properties, you either have to agree to the terms in their Addendum, or you don't do business with them.  They will not allow you to modify or change their Addendum.  If there is a particular term that you have a problem with, then address it in the offer/counter offer.  With Fannie Mae properties, depending on how the contract and Addendum are written, the purchase will be contingent on your investigation/inspection of the property as well as loan approval and the property appraising.  A home inspection doesn't really "fail" per se.  The inspection is for the purpose of disclosing to you the condition of the property.  If you change your mind or something doesn't come out as you expect in the home inspection or if there are issues with the loan approval and/or appraisal, then you would also be able to cancel as long as it is within the time period stated in the contract and Addendum.  Quick Hint:  Fannie Mae will usually approve up to a 3% credit towards your closing costs for owner occupied buyers and if you are a low down payment buyer (usually 5% down, FHA 3.5% down, or their Homepath financing).  Good luck to you.
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August 21
Home Path properties can only be purchased through an agent. Consult with your agent and as well with an attorney if you do not understand the legal terms of the REO addendum.

Here in Florida you have 10 days to inspect (through a licenced person)  and could terminate if not satisfactory. The due diligence times and elements are written down so you need to understand those facts.

Also note when purchasing a home path property your due diligence time runs when you received the verbal acceptance of the contract NOT when the contract is signed by all parties. 

Good luck,

Annett T. Block
Florida connects Inc. 
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August 21
Unfortunately, no matter what your attorney says, you won't be able to purchase a Fannie property or any bank owned property without signing the bank's addendum.
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August 21
Profile picture for zuser20140608173528919
Thanks for your responses, I really appreciate it!

We walked into an open house for the property so we actually don't have a buyer's agent, so we have been hesitant to place an offer. My attorney actually advised against signing the real estate purchase addendum that Fannie Mae requires for the offer but since it's the only way our offer would be considered I wanted to know if the contingency period allows for something as simple as "I changed my mind" after seeing the property again, hopefully with a contractor.
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August 21
Home inspections seldom fail, there can be a lot of issues and there is often more questions after an inspection that come to light during the inspection, so you can always terminate based on the  "unsatisfactory" inspection. Your agent should know how to explain this based on the language in the contract. Pay attention to the dates and make everything in writing.
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August 21
There should be some kind of inspection period (inspection contingency) - I've seen it anywhere from 7 days to 10 days from the date of acceptance.

You should also have a loan contingency. I believe that the property will need to appraise for the final purchase price after renovations are complete and that is part of the loan contingency
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August 21
 
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