Watchout for wicked provisions when dealing with Bank Owned homes
With all the offers going around on bank owned homes these days and only projected to be more. It is important to understand what exactly you are getting into. Banks usually have their own addendum’s or contracts that take precedent over local or state contracts.
Most banks also would like to see a home close within 30 days of final agreement and don’t like to allow for any contingencies except for maybe an inspection. When walking in to write an offer on a bank owned home, you better be free and clear along with being ready to follow through.
Don’t get cold feet when motoring along on a bank owned purchase, they are not so nice in releasing that earnest money deposit. Banks want the properties off the books and little hiccups along the way.
Here is a recent excerpt
In the event that Buyer does not serve notice to Seller of Buyer’s failure to procure the mortgage loan commitment within the time period set forth herein, then the contract shall continue in full force and effect, without any financing contingency, and Buyer shall have waived all right to terminate this contract pursuant to this provision
Sounds fun, but in the end it is the buyer that out loses out.
Make sure you read things carefully. If you don’t understand it, read it over and over again. Ask your agent plenty of questions.
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Good post! All the bank cares about is getting the “Non-performing asset” off the books. It is a roller coaster ride for the buyer — Not for the faint of heart. Buyer beware!
I have an REO property listed right now where the buyer got cold feet and probably thought they had an out by pulling a few strings. Not so fast