OfflineHello!
I need to understand how REO contracts work.
I have learned the exit clauses to put when making an offer whether REO or not. I have no problem with that with a non-REO property. However, I have experienced(once) that after my offer is accepted by the bank through my agent...he(agent) gives me an addendum that overrides the actual offer besides the offer price. The bank wanted me to sign that addendum with their own terms...WITHOUT my contingencies. Looks to me that the only thing they accepted is my offer price.
Now, the question is..do I also prepare an addendum(with my agent's help) that puts back my contingencies?
Please help!
Marizel
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What the bank did was to let you know that your offer was not acceptable to them. Instead of just giving you a flat out rejection, they gave you a counter offer in the form of an addendum.
You have 3 options: a) reject their counter offer and walk away from the deal, b) accept the deal with their contingency, or c) make a counter offer to their counter offer.
If you review their terms and you can accept some, but not others, write up another addendum indicating which terms you accept and over turn the ones you can't by putting in your own terms.
Negotiations are an opportunity for the buyer and seller to come to a "meeting of the minds". If one side just can't live with the terms of the other, then the deal is dead. Most deals come together with a give and take from both sides.
Good luck.
Thank you Coach Brent..that helps a lot.
Hey Marizel, Congrats on getting the bank to accept your offer price!! Can you tell us more about this deal? What contingencies did they reject? What was the end result?
Keep up the good work!!
I second that - what contingencies did they keep or reject Marizel? Typically you always have an inspection contingency, generally 5-10 days.
Thanks,
Tom