Bank accepted offer – scarry addendum

[all]

I made an offer on a bank-owned SFR in Vista and the bank responded today. They accepted the price, but they included an addendum with some strict terms.

The bank is giving me 13 days to remove all contingencies. That gives me 9 business days. I have 30 days to close, but I lose my deposit after less than two weeks.
The bank will not purchase the home warranty, it will pay for the basic title policy, but not ALTA or extended.
The bank will not pay the City Transfer Tax (it will pay the Country Transfer Tax).
The bank will not pay HOA transfer, documentation or any other HOA fee or assessment.

Is it ‘normal’ for a bank to respond in such manner?

TIA

[drboom]

“Normal” or not, it’s up to you whether you can stomach the terms. I can’t think of any good reason to compress the contingency period if the escrow is the usual 30 days, so see if they will negotiate.

In my case (short sale closing tomorrow–am I a bad Pigg?), the seller’s bank didn’t want to do termite inspection or home warranty. My agent picked up the inspection and we are splitting the warranty cost.

The bank was also fairly emphatic about the closing date (30 day escrow, but not willing to do an extension for any reason), but there weren’t any other unusual terms to the deal.

They picked services, naturally, and I think I got overcharged by a few hundred bucks by the escrow company–OTOH, the escrow guys said short sales are a PITA and claimed to have earned the $1k fee.

Good luck!

[drboom]

“Normal” or not, it’s up to you whether you can stomach the terms. I can’t think of any good reason to compress the contingency period if the escrow is the usual 30 days, so see if they will negotiate.

In my case (short sale closing tomorrow–am I a bad Pigg?), the seller’s bank didn’t want to do termite inspection or home warranty. My agent picked up the inspection and we are splitting the warranty cost.

The bank was also fairly emphatic about the closing date (30 day escrow, but not willing to do an extension for any reason), but there weren’t any other unusual terms to the deal.

They picked services, naturally, and I think I got overcharged by a few hundred bucks by the escrow company–OTOH, the escrow guys said short sales are a PITA and claimed to have earned the $1k fee.

Good luck!

[drboom]

“Normal” or not, it’s up to you whether you can stomach the terms. I can’t think of any good reason to compress the contingency period if the escrow is the usual 30 days, so see if they will negotiate.

In my case (short sale closing tomorrow–am I a bad Pigg?), the seller’s bank didn’t want to do termite inspection or home warranty. My agent picked up the inspection and we are splitting the warranty cost.

The bank was also fairly emphatic about the closing date (30 day escrow, but not willing to do an extension for any reason), but there weren’t any other unusual terms to the deal.

They picked services, naturally, and I think I got overcharged by a few hundred bucks by the escrow company–OTOH, the escrow guys said short sales are a PITA and claimed to have earned the $1k fee.

Good luck!

[drboom]

“Normal” or not, it’s up to you whether you can stomach the terms. I can’t think of any good reason to compress the contingency period if the escrow is the usual 30 days, so see if they will negotiate.

In my case (short sale closing tomorrow–am I a bad Pigg?), the seller’s bank didn’t want to do termite inspection or home warranty. My agent picked up the inspection and we are splitting the warranty cost.

The bank was also fairly emphatic about the closing date (30 day escrow, but not willing to do an extension for any reason), but there weren’t any other unusual terms to the deal.

They picked services, naturally, and I think I got overcharged by a few hundred bucks by the escrow company–OTOH, the escrow guys said short sales are a PITA and claimed to have earned the $1k fee.

Good luck!

[drboom]

“Normal” or not, it’s up to you whether you can stomach the terms. I can’t think of any good reason to compress the contingency period if the escrow is the usual 30 days, so see if they will negotiate.

In my case (short sale closing tomorrow–am I a bad Pigg?), the seller’s bank didn’t want to do termite inspection or home warranty. My agent picked up the inspection and we are splitting the warranty cost.

The bank was also fairly emphatic about the closing date (30 day escrow, but not willing to do an extension for any reason), but there weren’t any other unusual terms to the deal.

They picked services, naturally, and I think I got overcharged by a few hundred bucks by the escrow company–OTOH, the escrow guys said short sales are a PITA and claimed to have earned the $1k fee.

Good luck!

[AK]

It doesn’t seem to be that unusual. The banks want their money, fast. I think they’re scared that market conditions will change overnight. And there are lots of flaky buyers out there.

I ran across one where the bank wanted a five-day inspection period, 15-day escrow, and a 3 percent deposit. It was a beautiful home at a fair price, but I’m glad I passed on it. (Even if my agent wanted to throttle me.)

In comparison your terms don’t seem to be all that bad.

[AK]

It doesn’t seem to be that unusual. The banks want their money, fast. I think they’re scared that market conditions will change overnight. And there are lots of flaky buyers out there.

I ran across one where the bank wanted a five-day inspection period, 15-day escrow, and a 3 percent deposit. It was a beautiful home at a fair price, but I’m glad I passed on it. (Even if my agent wanted to throttle me.)

In comparison your terms don’t seem to be all that bad.

[AK]

It doesn’t seem to be that unusual. The banks want their money, fast. I think they’re scared that market conditions will change overnight. And there are lots of flaky buyers out there.

I ran across one where the bank wanted a five-day inspection period, 15-day escrow, and a 3 percent deposit. It was a beautiful home at a fair price, but I’m glad I passed on it. (Even if my agent wanted to throttle me.)

In comparison your terms don’t seem to be all that bad.

[AK]

It doesn’t seem to be that unusual. The banks want their money, fast. I think they’re scared that market conditions will change overnight. And there are lots of flaky buyers out there.

I ran across one where the bank wanted a five-day inspection period, 15-day escrow, and a 3 percent deposit. It was a beautiful home at a fair price, but I’m glad I passed on it. (Even if my agent wanted to throttle me.)

In comparison your terms don’t seem to be all that bad.

[AK]

It doesn’t seem to be that unusual. The banks want their money, fast. I think they’re scared that market conditions will change overnight. And there are lots of flaky buyers out there.

I ran across one where the bank wanted a five-day inspection period, 15-day escrow, and a 3 percent deposit. It was a beautiful home at a fair price, but I’m glad I passed on it. (Even if my agent wanted to throttle me.)

In comparison your terms don’t seem to be all that bad.

[SD Realtor]

captcha the addendum you have brought up is on par with others I have seen. You also did not mention if they were going to pay for a termite clearance. I have seen some that would not even do that, and they only gave a 10 day contingency period. Assume also they will not pay for repairs as well, you can try to ask for them, you never know. Also there is more then likely a penalty if you do not close on time for 100 bucks a day or something like that. Finally they will ask for a release of liability from mold, pests, acts of god, and pretty much anything and everything the planet can dish out.

However, yes this is all pretty normal.

[SD Realtor]

captcha the addendum you have brought up is on par with others I have seen. You also did not mention if they were going to pay for a termite clearance. I have seen some that would not even do that, and they only gave a 10 day contingency period. Assume also they will not pay for repairs as well, you can try to ask for them, you never know. Also there is more then likely a penalty if you do not close on time for 100 bucks a day or something like that. Finally they will ask for a release of liability from mold, pests, acts of god, and pretty much anything and everything the planet can dish out.

However, yes this is all pretty normal.

[SD Realtor]

captcha the addendum you have brought up is on par with others I have seen. You also did not mention if they were going to pay for a termite clearance. I have seen some that would not even do that, and they only gave a 10 day contingency period. Assume also they will not pay for repairs as well, you can try to ask for them, you never know. Also there is more then likely a penalty if you do not close on time for 100 bucks a day or something like that. Finally they will ask for a release of liability from mold, pests, acts of god, and pretty much anything and everything the planet can dish out.

However, yes this is all pretty normal.

[SD Realtor]

captcha the addendum you have brought up is on par with others I have seen. You also did not mention if they were going to pay for a termite clearance. I have seen some that would not even do that, and they only gave a 10 day contingency period. Assume also they will not pay for repairs as well, you can try to ask for them, you never know. Also there is more then likely a penalty if you do not close on time for 100 bucks a day or something like that. Finally they will ask for a release of liability from mold, pests, acts of god, and pretty much anything and everything the planet can dish out.

However, yes this is all pretty normal.

[Author]

Posts