Home Buying in California>Question Details

Argie, Home Buyer in Los Angeles, CA

The bank addendum to our foreclosure purchase says the addendum is the prevailing document if there is

Asked by Argie, Los Angeles, CA Sun Jun 29, 2008

a conflict with the purchase contract. The boiler plate then goes on to apparently void contingencies that we negotiated in the contract. I'm inclined to change the wording to make the contract the prevailing document, and if not accepted, walk away from the deal. Does that seem like a reasonable approach?

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Argie,

You can counter what the bank has sent to you but it is highly unlikely that they will change anything. As you probably noticed, the bank's addendum probably has everything in their favor and nothing favoring the buyer.

It is very frustrating that the banks all have their own addendum and it changes most everything that the CAR has in their contracts. The California Association of Realtors has spent a lot of money perfecting the contracts but yet, the banks hire more attorneys to turn those CAR contracts upside down.

Be prepared to walk away because they most likely will not see things your way. I will say that I have sold REO property and the buyers have accepted the addendum and didn't have problems. That is a choice you will have to make.

Sorry - wish I had better news!

Dot Chance
The Chance Team
Keller Williams Realty
http://www.DotChance.blogspot.com
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Sun Jun 29, 2008
No it is not a reasonable approach. You will not be purchasing the home if that is what you want to do. The form is that way to deal with the differences in state laws. If you want to change the document, then don't buy an REO property. Those properties are being sold as-is, where-is. Your agent should have explained that to you before writing an offer.
Web Reference: http://www.LeanderHomes.com
1 vote Thank Flag Link Sun Jun 29, 2008
The previous answer is both right and wrong. No, you can't make changes to their contract because they think they'll die if you do that, I've not found that to be negotiable. However, depending on what contingencies you're talking about, and your circumstances, it might be OK. I am seeing banks allow financing and appraisal contingencies, home inspections (they won't do repairs, but you can do the inspection and take it or leave it), title contingencies... all that stuff. But, its not individually negotiated, its in their boiler plate addendum.

If you can't live with what they're looking for, move on. If you can live with it, still be careful with the deadlines. Despite the advice from the banks' listing agents, I am successfully getting approvals and ratifications using an addendum I created which protects my buyers. Check it out. Good luck. (You do have an agent, right?)
0 votes Thank Flag Link Sun Jun 29, 2008
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