Keep Your Eye On REO Deadlines
You may not be aware that buying an REO, a bank owned property, is quite a different process then buying a property the old fashioned way, and it is extremely important that your Realtor understands the difference. Let me tell you why if your Realtor doesn\’t know the vast difference between the two, how it can cost you a lot of money, and possibly cause you to all together lose your property.
Banks have complete control when it comes to a bank owned property. They make their own rules and follow no disclosure requirements. Typically they will have a potential client sign something called an addendum, which basically takes away the protections a buyer may have, and gives them sole power in the decision making.
They will give you a timeline you have to follow, or more likely then not there will be repercussions. They really unfair thing about it, is that they don\’t have to respond to anything or anybody until they are good and ready. For an example, I myself have a bank owned property being held in escrow at this moment, on which I was approved for well over a month ago. However, the bank didn\’t even open my escrow until almost three weeks into the thirty day stint.
We didn\’t get a copy of the signed contract or bank addendum until three weeks into the deal. Of course, the bank addendum we signed at the beginning of the transaction had us agree to pay a $100.00 per day per Diem for every day we went over the 30 days agreed upon in the contract.
They didn\’t help us in anyway to meet our deadlines either. As you may already be aware, most short sales do not have a successful closing. Typically this happens because the listing agent that takes on the contract isn\’t familiar with how a short sale works, but still takes the home anyway. In the same breath, REO\’s can also turn out the same. In my case, the listing agent was very confident that he had all of his ducks in a row, and the bank was ready to close.
Submitted by: A. Fulton knows all about shopping Big Bear, CA foreclosures plus Big Bear, CA houses overall. Read his other posts online.
