Thursday, December 27, 2007

Non-Traditional Foreclosure Contracts & Bank Addendums

There is no such thing as "standard operating procedure" when it come to Foreclosure Contracts. Every Asset Management Company and every Bank has their own unique policies and procedures ... and the Foreclosure Sales Contract is likely going to be their way or the highway.

It is typical here in Northern VA that the initial purchase offer is submitted using the standard local contract and after conditional (oral) acceptance by the Bank that a REO Addendum will follow. The Bank's Counter Addendum will supersede the terms in the local contract and while a majority of the Counter Addendum is consistent with the local contract ... there are some critical differences. The Bank may be selling properties in all 50 states and they want a contract document that they fully understand and are 100% comfortable with the terms and conditions. It is not uncommon for the Bank to demand that there be NO/ZERO changes or alterations to the Bank Addendum ... regardless of how minor or insignificant.

Realty Times Article: Watch Out For Nontraditional Foreclosure Contracts
"Your best offense is a real estate professional that has navigated
such waters and can help you miss any pitfalls along the way."

Realty Times, M. Anthony Carr - January 2007

Having a Buyer Agent that is familiar with both the sale and purchase of REO/Foreclosure properties can be an important factor in a successful foreclosure transaction.

John Thompson
Samson Realty

VA REO Listing Agent - VA Foreclosure Buyers Agent

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