Tim Bradford - AMMCorp.net

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Warn your Buyers about Sellers Addendums on bank owned properties.

Below is one section of a Sellers Addendum that I believe needs to be reviewed with any buyers.  Look at section (b).    I think most know that seller addendums like these were written by the attorneys for the sellers and the clients they represent.    The wording you see in section (b) is similar to what you see on HUD Owned properties, Now I am starting to see it more often on non HUD contract.   IF you are asking the seller to assist your buyer with closing cost and encounter an addendum like this, verify with your buyer if they can cover the additonal closing costs that this paragraph will make them libel for paying. 

 

 

Any Ohio buyers or Realtors that have any questions, please give me a call or send me an Email.   


Tim Bradford
Ohio Mortgage Banker LO.007173.000/ NMLS 250013
Cell: 216.324.8113 Anytime
www.GetAMortgageNow.com or www.Go2Apply.com
www.OhioHomePath.com or www.OhioRuralHomeLoans.com

Serving the Ohio Realtors and Home Buyers and Home Owners
Comment balloon 10 commentsTim Bradford • September 11 2009 11:55AM

Comments

Bank owned addenda are a trip. Nothing is the same, and most are more legalese than a huge merger transaction. When will the madness stop?

Posted by Dave Humphrey, Broker, Real Estate Advice You Can TRUST! (RE/MAX Marketplace) about 8 years ago

Dave, thanks for your comment.   I believe most realtors are familar with their contracts and those commonly used in there market.  This adds a whole new twist to the business.   The offer that was counterred by the bank first reduced the closing costs that they would pay for the borrower.  They also reduced the number of days to close with a penalty of $100.00 per day for any extentions.  Also, this paragraph was on one page of the 15 page addendum.   They also wanted the addendum signed within 24 hours or the offer was Null and Void and Required/Recommended the use of the Title Company they choose otherwise additional charges might apply.  

With these addendums, I believe they should be part of a Sellers Disclosure to be submitted with the original offer and also because of the Required/Recommended Use that an estimate of those costs be disclosed.    Just my .02cents.  

Posted by Tim Bradford, NMLS 250013 about 8 years ago

I have encountere this and have found the best solution is to have them added to the special stip page at the end of the addendums. As a buyers agent we have to go over the entire contract to make sure that everything is as per the negotiations, you will not believe the changes we can get if it is a verbal negotiation!

Posted by Deeba Khader (Harry Norman, Realtors) about 8 years ago

Deeba,   Thanks for your insite and also welcome to ActiveRain.  as you say MAKE SURE EVERYTHING is per the negotiations. 

Posted by Tim Bradford, NMLS 250013 about 8 years ago

You're right.  These extra costs could be an unpleasant surprise to the Buyer.  thanks for the heads up on this.

Posted by Tom Boos, Providing the very best of service to Sellers and (Sine & Monaghan Realtors, Real Living) about 8 years ago

Tim...  a great post to point this out.  I have had to point this out to a client recently. Just another way for banks to cover their asses...

jeff belonger

Posted by Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) about 8 years ago

Tom and Jeff, thank both of you for your comments.   Yes 15 pages of CYA.   And on this transcation the Realtor was supprised when I put together the GFE.   They first complained my fees were to high, but then realized their mistake.    One not reading it, but more importantly not making their client aware of this before they had their client sign each of the 15 pages.   

Posted by Tim Bradford, NMLS 250013 about 8 years ago

Tim, that's a very useful information. What a great topic to speak about at our second Time to buy in Cleveland Event next Wednesday! I hope you will come and speak about this important issue.

Posted by Svetlana Stolyarova, Local-n-Global Realty, Broker 216-548-4663 (Local-n-Global Realty, Cleveland and International Real Estate Solution) about 8 years ago

Your contract is a bit different from what I've seen in that it says they are exempt from paying transfer tax.  Here they've been having the Buyer pay the transfer tax.  If they are exempt, is their half exempt?  If they are to pay and they are exempt is their no tax due?

Posted by Jim Valentine (RE/MAX Realty Affiliates) about 8 years ago

We've collected a lot of addendums from several different clients and put together a package for individuals wishing to buy bank owned property. We try to prepare them as best as possible for all the different kinds of clauses and stips that may show up on the addenda. Since there are often time limits on getting the addenda signed and returned, if the buyers have some time in advance to look them over it saves both them and us a lot of time.

The seond house I ever sold in my career was a Fannie Mae and I remember that addendum being almost 20 pages at that time. Wow! Good post Tim. We will be in touch.

Posted by Matthew P. Klein (The Real Estate Corner) about 8 years ago

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