Banks making it impossible to buy their glut of properties

[Cosmo31]

I’ve been going back and forth with offers on a foreclosure and I’m not dealing directly with the bank. I’m dealing with an agent for a company handling the foreclosure for the bank (how many more people can be involved in this?). They are making it pretty hard to buy one of their properties. As expected, the contact was pretty hard to reach but we finally agreed on a price so she sent a “purchase addendum.” This is the craziest contract I have ever seen. I am not an expert but certain terms seem contradictory, nonsensical, and impossible.

“Impossible” example:
“Closing shall take place on or before 09/05/08 or within five (5) calendar days of final loan approval by the lender, whichever is earlier.” WTF!! Nothing closes within 5 calendar days. It doesn’t even say business days!

“Nonsensical” example:
There is a whole section about properties in Alabama. The property is in San Diego. Shouldn’t the agent in charge take this out?

“Contradictory” example:
The addendum basically says if the buyer requests an extension of the closing date, the buyer pays “the greater of $50.00 or 1/10 of 1% of the purchase price per calendar day.” Then what the hell is the extension for?!

Here is the best part: the addendum cannot be changed. We can make addendums to the addendum but none of the above sections can be negotiated. We specifically asked about the 1/10 of 1%.. a sly way of slipping in $510.00 per diem and they said it’s non-negotiable. Isn’t everything negotiable?

Our broker and loan agent said “don’t sign it.” How are we supposed to buy it? We agreed on a price?? My agent is currently trying to negotiate. Very frustrating.

I think I will turn back into a Piggy and wait for lower prices and more desperate banks.

[AK]

$510 a day. Pure profit for the company handling the foreclosures, I’m sure.

I’d be tempted to contact the bank and let them know why their non-performing assets aren’t moving.

[AK]

$510 a day. Pure profit for the company handling the foreclosures, I’m sure.

I’d be tempted to contact the bank and let them know why their non-performing assets aren’t moving.

[AK]

$510 a day. Pure profit for the company handling the foreclosures, I’m sure.

I’d be tempted to contact the bank and let them know why their non-performing assets aren’t moving.

[AK]

$510 a day. Pure profit for the company handling the foreclosures, I’m sure.

I’d be tempted to contact the bank and let them know why their non-performing assets aren’t moving.

[AK]

$510 a day. Pure profit for the company handling the foreclosures, I’m sure.

I’d be tempted to contact the bank and let them know why their non-performing assets aren’t moving.

[kev374]

seriously, when I see some of the prices that banks are asking for their REOs and that you without inspection, “as is”, I can’t help but laughing! It’s downright ridiculous! some of them want top dollar, even more than many listings!

[kev374]

seriously, when I see some of the prices that banks are asking for their REOs and that you without inspection, “as is”, I can’t help but laughing! It’s downright ridiculous! some of them want top dollar, even more than many listings!

[kev374]

seriously, when I see some of the prices that banks are asking for their REOs and that you without inspection, “as is”, I can’t help but laughing! It’s downright ridiculous! some of them want top dollar, even more than many listings!

[kev374]

seriously, when I see some of the prices that banks are asking for their REOs and that you without inspection, “as is”, I can’t help but laughing! It’s downright ridiculous! some of them want top dollar, even more than many listings!

[kev374]

seriously, when I see some of the prices that banks are asking for their REOs and that you without inspection, “as is”, I can’t help but laughing! It’s downright ridiculous! some of them want top dollar, even more than many listings!

[SD Realtor]

Buying REO properties can be frustrating.

Just to clarify a few things….

“Closing shall take place on or before 09/05/08 or within five (5) calendar days of final loan approval by the lender, whichever is earlier.”

So I don’t mean to play the devils advocate but why is that to early or impossible? We are not yet at August 1 correct? Also the 5 days is after your final loan approval. Generally once your loan is approved lenders can send the loan docs to escrow for signature. I am just confused why you think this is impossible? Again, I am not trying to be biased but I guess I am not sure why this seems to be impossible, perhaps I am missing something.

*********
As far as the Alabama stuff goes there is no need to remove it from the contract because by definition of the location where you are buying it will not apply.

*********

Your contradictory example also kind of escapes me. I guess I see no contradiction here. Basically the contract is saying if YOU the buyer requests an extension to close escrow on a date that is later then the originally agreed upon date, you will agree to pay a penalty. This is not saying you pay if the SELLER requests the extension only the buyer.

Look, EVERYTHING is negotiable but being negotiable also means that either party has the LEGAL RIGHT to say NO. Just as you have the LEGAL RIGHT to ask for whatever you want to.

There is ABSOLUTELY nothing in this REO purchase that you have put forth that seems out of the ordinary to me. Let me ask you this, are you getting the property at a good price compared to comps? REO purchases are EXTREMELY one sided. Every now and then you can indeed get a lender to negotiate in good faith. Sometimes this can happen. Yet more often then not what you have stated above is pretty much the case. It is frustrating and it is VERY unsettling. Also know that when you purchase the REO there will be an absolute liability release you will sign. You can find 10 dead bodies covered with toxic mold under the floorboards and there is absolutely no liability that the lender will carry. Your pipes can burst and flood out the entire home the day after you moved in because of crappy polybutelene plumbing and there is no liability.

Again, I am not trying to scare you out of the home, just trying to accomodate you to the norms with purchasing REOs. By the same token NONE of this is something you are obligated to undertake. If your broker and loan agent are urging you not to sign, then don’t sign, it is not worth the stress.

I think that lower prices will indeed happen. I don’t think that the conditions attached to REO properties will change though.

[SD Realtor]

Buying REO properties can be frustrating.

Just to clarify a few things….

“Closing shall take place on or before 09/05/08 or within five (5) calendar days of final loan approval by the lender, whichever is earlier.”

So I don’t mean to play the devils advocate but why is that to early or impossible? We are not yet at August 1 correct? Also the 5 days is after your final loan approval. Generally once your loan is approved lenders can send the loan docs to escrow for signature. I am just confused why you think this is impossible? Again, I am not trying to be biased but I guess I am not sure why this seems to be impossible, perhaps I am missing something.

*********
As far as the Alabama stuff goes there is no need to remove it from the contract because by definition of the location where you are buying it will not apply.

*********

Your contradictory example also kind of escapes me. I guess I see no contradiction here. Basically the contract is saying if YOU the buyer requests an extension to close escrow on a date that is later then the originally agreed upon date, you will agree to pay a penalty. This is not saying you pay if the SELLER requests the extension only the buyer.

Look, EVERYTHING is negotiable but being negotiable also means that either party has the LEGAL RIGHT to say NO. Just as you have the LEGAL RIGHT to ask for whatever you want to.

There is ABSOLUTELY nothing in this REO purchase that you have put forth that seems out of the ordinary to me. Let me ask you this, are you getting the property at a good price compared to comps? REO purchases are EXTREMELY one sided. Every now and then you can indeed get a lender to negotiate in good faith. Sometimes this can happen. Yet more often then not what you have stated above is pretty much the case. It is frustrating and it is VERY unsettling. Also know that when you purchase the REO there will be an absolute liability release you will sign. You can find 10 dead bodies covered with toxic mold under the floorboards and there is absolutely no liability that the lender will carry. Your pipes can burst and flood out the entire home the day after you moved in because of crappy polybutelene plumbing and there is no liability.

Again, I am not trying to scare you out of the home, just trying to accomodate you to the norms with purchasing REOs. By the same token NONE of this is something you are obligated to undertake. If your broker and loan agent are urging you not to sign, then don’t sign, it is not worth the stress.

I think that lower prices will indeed happen. I don’t think that the conditions attached to REO properties will change though.

[SD Realtor]

Buying REO properties can be frustrating.

Just to clarify a few things….

“Closing shall take place on or before 09/05/08 or within five (5) calendar days of final loan approval by the lender, whichever is earlier.”

So I don’t mean to play the devils advocate but why is that to early or impossible? We are not yet at August 1 correct? Also the 5 days is after your final loan approval. Generally once your loan is approved lenders can send the loan docs to escrow for signature. I am just confused why you think this is impossible? Again, I am not trying to be biased but I guess I am not sure why this seems to be impossible, perhaps I am missing something.

*********
As far as the Alabama stuff goes there is no need to remove it from the contract because by definition of the location where you are buying it will not apply.

*********

Your contradictory example also kind of escapes me. I guess I see no contradiction here. Basically the contract is saying if YOU the buyer requests an extension to close escrow on a date that is later then the originally agreed upon date, you will agree to pay a penalty. This is not saying you pay if the SELLER requests the extension only the buyer.

Look, EVERYTHING is negotiable but being negotiable also means that either party has the LEGAL RIGHT to say NO. Just as you have the LEGAL RIGHT to ask for whatever you want to.

There is ABSOLUTELY nothing in this REO purchase that you have put forth that seems out of the ordinary to me. Let me ask you this, are you getting the property at a good price compared to comps? REO purchases are EXTREMELY one sided. Every now and then you can indeed get a lender to negotiate in good faith. Sometimes this can happen. Yet more often then not what you have stated above is pretty much the case. It is frustrating and it is VERY unsettling. Also know that when you purchase the REO there will be an absolute liability release you will sign. You can find 10 dead bodies covered with toxic mold under the floorboards and there is absolutely no liability that the lender will carry. Your pipes can burst and flood out the entire home the day after you moved in because of crappy polybutelene plumbing and there is no liability.

Again, I am not trying to scare you out of the home, just trying to accomodate you to the norms with purchasing REOs. By the same token NONE of this is something you are obligated to undertake. If your broker and loan agent are urging you not to sign, then don’t sign, it is not worth the stress.

I think that lower prices will indeed happen. I don’t think that the conditions attached to REO properties will change though.

[SD Realtor]

Buying REO properties can be frustrating.

Just to clarify a few things….

“Closing shall take place on or before 09/05/08 or within five (5) calendar days of final loan approval by the lender, whichever is earlier.”

So I don’t mean to play the devils advocate but why is that to early or impossible? We are not yet at August 1 correct? Also the 5 days is after your final loan approval. Generally once your loan is approved lenders can send the loan docs to escrow for signature. I am just confused why you think this is impossible? Again, I am not trying to be biased but I guess I am not sure why this seems to be impossible, perhaps I am missing something.

*********
As far as the Alabama stuff goes there is no need to remove it from the contract because by definition of the location where you are buying it will not apply.

*********

Your contradictory example also kind of escapes me. I guess I see no contradiction here. Basically the contract is saying if YOU the buyer requests an extension to close escrow on a date that is later then the originally agreed upon date, you will agree to pay a penalty. This is not saying you pay if the SELLER requests the extension only the buyer.

Look, EVERYTHING is negotiable but being negotiable also means that either party has the LEGAL RIGHT to say NO. Just as you have the LEGAL RIGHT to ask for whatever you want to.

There is ABSOLUTELY nothing in this REO purchase that you have put forth that seems out of the ordinary to me. Let me ask you this, are you getting the property at a good price compared to comps? REO purchases are EXTREMELY one sided. Every now and then you can indeed get a lender to negotiate in good faith. Sometimes this can happen. Yet more often then not what you have stated above is pretty much the case. It is frustrating and it is VERY unsettling. Also know that when you purchase the REO there will be an absolute liability release you will sign. You can find 10 dead bodies covered with toxic mold under the floorboards and there is absolutely no liability that the lender will carry. Your pipes can burst and flood out the entire home the day after you moved in because of crappy polybutelene plumbing and there is no liability.

Again, I am not trying to scare you out of the home, just trying to accomodate you to the norms with purchasing REOs. By the same token NONE of this is something you are obligated to undertake. If your broker and loan agent are urging you not to sign, then don’t sign, it is not worth the stress.

I think that lower prices will indeed happen. I don’t think that the conditions attached to REO properties will change though.

[Author]

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