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Old 05-25-2018, 04:08 PM
 
2,359 posts, read 3,028,189 times
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Put off signing the contract until the last day to do so, in the interim, get everything in order to meet those requirements. You actually have more time depending on what the deadline is to accept their terms and sign the contract.
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Old 05-25-2018, 05:48 PM
DKM
 
Location: Thousand Oaks, CA
2,060 posts, read 671,463 times
Reputation: 2215
You are buying a bank owned home. Its basically as is. Northrick and Silverfall are both right.
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Old 05-25-2018, 07:21 PM
 
Location: Columbia, SC
8,844 posts, read 17,440,566 times
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REO's are tough. Usually you play by their rules or they take their ball and they go home.

#1-would be tough. Our inspector is usually 5 days out to book him.
#2-You'll get your docs submitted timely, and it's an as is sale but they'll do repairs and allow it to be added to sales price.(more generous than most REO's which are strictly as is and if lender requires repairs you're screwed.
#3-pretty standard, if you don't close on time it cost you $100/day to extend.

Note-not legal advice. Consider but don't rely on this information and I defer to your real estate agent.
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Old 05-25-2018, 09:37 PM
 
16,485 posts, read 17,513,441 times
Reputation: 23531
Quote:
Originally Posted by phantom4 View Post
Buying house, NJ. Sold by bank.



They accepted offered price, but want some additions to the contract:



1. Initial period allowing us to do the inspection was 10 days, they want to change it to 3.

2. buyer agrees that failure to provide required commitment documents to seller within this time frame will result in seller retaining EMD; buyer agrees to increase sales price to cover any lender required repairs if any.


3. Subject to seller addendum, sold as is $100 per diem if extended at no fault of seller; all offers are subject to final investor approval;


Can please someone explain what points 2 and 3 means? Is it normal for buyer to sign with these points?


Am I correct that the point 1 is extremely alerting?
I don't see any other reasons for that, unless something is really wrong with the house.


1. That’s a really tight high pressure window. Basically theire giving you little time to have anything checked over. Basically the inspector says this that and the other. You need a pro to look at this and that. If you can’t get someone within that 3 day window. Too bad so sad.

2. Basically they want to keep your EMD if you make any mistake or ask for any extension or fail to turn in your docs to them for ANY reason even beyond your control.
They expect you to up your offer to cover any repairs. Basically try want nothing to do with anything except show me the money.

3. Basically they want $100 a day for any reasons n you might need to extend the closing or any aspect of the loan/process


I had a bank try and play games like that. I put a bid and never heard back. Almost TWO months later my agent called me. I was 800 miles away on vacation. They accepted my bid and were giving me 5 days for insiection and wanted 30 day closing. Nice of them to be so benevolent. I told my agent I can’t d anything about it so please decline the offer. 1/2 hour later it extended to 14 days and 45 day to close.
I agreed.
Fast forward. The inspection showed the house to be a absolute mess. I wanted to resubmit. My agent refused to resubmit saying they won’t accept. I fired the agent after I told her to send a cancellation notice due to inspection clause.

There is no way I would accept the conditions the seller offered. It’s nothing but a bs strong arm move. I wouldn’t even really want to deal with such seller
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Old 05-26-2018, 08:00 AM
 
5,753 posts, read 3,038,463 times
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I am not a professional, just an average homeowner, so my thoughts are strictly from the perspective of Joe Average.


Quote:
Originally Posted by phantom4 View Post
...


1. Initial period allowing us to do the inspection was 10 days, they want to change it to 3.

2. buyer agrees that failure to provide required commitment documents to seller within this time frame will result in seller retaining EMD; buyer agrees to increase sales price to cover any lender required repairs if any.


3. Subject to seller addendum, sold as is $100 per diem if extended at no fault of seller; all offers are subject to final investor approval;



#1 seems ridiculously short. Makes it harder for you to really dig into things.


#2 scares me to death. It's basically a blank check. You're agreeing to pay the cost of any repairs. Will the cost of these repairs take the loan amount beyond the value? Do you have lots of cash on hand?


#3 Another blank check where you have to pay them for any delay.


Just as Joe Average, I'd walk away. A professional investor who has the resources at hand might think differently, but Joe Average isn't buying an investment property, Joe Average is buying a place to live life.
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Old 05-26-2018, 03:56 PM
 
1,037 posts, read 754,162 times
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Have bought two foreclosures from banks before and all of that sounds pretty normal and routine.

The bank expects you to know you're buying a house at a huge discount, and that you know what you're doing.

If you're thinking buying a foreclosure is the same as buying a house from a private seller, then you're in over your head and should not go through with this purchase.
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Old 05-26-2018, 03:59 PM
 
1,037 posts, read 754,162 times
Reputation: 1646
Quote:
Originally Posted by tnff View Post
I am not a professional, just an average homeowner, so my thoughts are strictly from the perspective of Joe Average.




#1 seems ridiculously short. Makes it harder for you to really dig into things.


#2 scares me to death. It's basically a blank check. You're agreeing to pay the cost of any repairs. Will the cost of these repairs take the loan amount beyond the value? Do you have lots of cash on hand?


#3 Another blank check where you have to pay them for any delay.


Just as Joe Average, I'd walk away. A professional investor who has the resources at hand might think differently, but Joe Average isn't buying an investment property, Joe Average is buying a place to live life.
#1) 3 days is normal. 7 days is normal as well. I've seen some foreclosures that didn't even allow inspections. It was simply buying as-is.

#2) It's not a blank check to the bank. The bank sees no benefit from this, so they will not spend recklessly. Some lenders require certain things be fixed before they will fork over the money. The bank that owns the house doesn't want to play games. They want to wash their hands of the house.

#3) The bank is a business. They're paying for every day an external lender is delaying the process. These charges make sense.

And you are absolutely right. Average joes normally have no business buying a foreclosure, especially if they're taking a mortgage out on one.
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Old 05-26-2018, 06:50 PM
 
Location: Athol, Idaho
2,182 posts, read 1,055,531 times
Reputation: 3184
Quote:
Originally Posted by tnff View Post
I am not a professional, just an average homeowner, so my thoughts are strictly from the perspective of Joe Average.




#1 seems ridiculously short. Makes it harder for you to really dig into things.


#2 scares me to death. It's basically a blank check. You're agreeing to pay the cost of any repairs. Will the cost of these repairs take the loan amount beyond the value? Do you have lots of cash on hand?


#3 Another blank check where you have to pay them for any delay.


Just as Joe Average, I'd walk away. A professional investor who has the resources at hand might think differently, but Joe Average isn't buying an investment property, Joe Average is buying a place to live life.
I would say your point number three isn't necessarily so and it really depends on the property itself.
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Old 05-28-2018, 05:42 AM
 
562 posts, read 467,518 times
Reputation: 681
I would not purchase this house any repairs found your going to pay for. To me it means they know they are repairs needed. Thats why they agreed to your price, 3 days is a short window, I would look at other homes that don't put these contingencies in.
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Old 05-31-2018, 07:08 AM
 
33 posts, read 11,815 times
Reputation: 33
Thanks a lot for the answers. So, looks if there is something really wrong with the house, e.g. termites, then we don't have way out, we have to fix it on our expense? Also, the EMD is 5%, I guess we will loose it in case we dissagree to repair on our cost, correct?
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