Skip to main content
Steven M. O'Brien

Steven O'Brien’s Answers

1 total

  • Does a FHA amendatory clause act as a counter offer to the real estate purchase agreement?

    I submitted an offer for a bank owned house with a standard PA. My agent said I would be going with conventional financing in the offer (offer accepted). The seller then had me sign a counter proposal to the agreement. Both the seller and I signed...

    Steven’s Answer

    You apparently had a contract formed when the bank agreed to your offer. The signed "counter proposal" may be regarded as an amendment to the agreement, depending upon its contents. Your offer to finance through FHA may be considered an offer to amend the contract, and their refusal to accept FHA financing was simply a rejection to amend the contract. Thus, you still have a contract (the "original" contract) with an amendment. There appears to be ample time to close and you have secured conventional financing. Provided that you meet all of your other obligations under the contract, you should be closing on this property under the language of the original contract and the agreed upon amendment. I would highly recommend contacting an attorney to review the specific details of this and to provide a legal opinion once they have deciphered the relevant facts.

    See question