Buying REOs on Your Own is Much Like Swimming in the Atlantic in a Chum Slathered Suit

avatarthumbnail.jpgLet’s say you decide to purchase a bank owned home and you believe it’s a waste of time to have your own agent; you can call the name on the sign, after all (though the odds of a human answering the phone are about nil) and all real estate agents are about the same.

Except …

The listing agent represents the seller in the transaction … the lender … not you. So when you receive a piece of dreck like this one from a lender as merciless as the fine folks at Huntington National Bank, you’re completely on your own.

Now, virtually all lenders require their addenda to be returned intact. If you strike out a phrase, change any wording or even clarify the lenders’ inability to write “twenty-one” as a number (as Heather illustrated) your offer will be ignored out of hand. So in this case, about all a buyers’ agent can do is tell you to run for your life.

Which, of course, is sound advice and worth having your own agent to tell you do so. (To my readers who think running is common sense, I might suggest that you have a bit more experience in purchasing homes than your average first-time buyer … I’ve had some buyers receive counter offers from lenders demanding a “zero” day inspection period and wonder why that’s a bad thing.)

This isn’t to say buying a bank owned home is rocket science; nothing in real estate is that complicated, at least not until it becomes that complicated. Still, it’s worth having a second set of eyes looking at paperwork which undoubtedly will be weighted heavily in the favor or the seller.

Just don’t expect the guy or gal on the sign to tell you that.

(h/t to The Phoenix Real Estate Guy, who according to Trulia Voices is aging before my eyes)

[tags]Phoenix real estate[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

1 Comment

  • Jay Thompson 8 years ago

    “…who according to Trulia Voices is aging before my eyes”

    You’re a funny man.

    Not.

    But what you say here is, of course, 100% correct. These bank addenda are getting absurd.

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