Why is a bank owned property so difficult to purchase? I offered full price, 50% down.Still no deal without signing a 12 page addendum. B

Asked by Barbra Weissman, 22041 Fri Nov 26, 2010

This is a 650,000K house on the mkt for more than a year. The addendum allows the bank to sell the property to a 3rd party up to 2 days before the closing. Who would sign something like that?

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6
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sat Nov 27, 2010
Sounds like you have encountered a standard addendum - recommend you align yourself with resources - agent and attorney - that specialize in distressed properties (shorts and bank owned). I'm finding that the sale are easier, not harder, than in the past.

Get the right resources working for you and your chances for success will rise.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
1 vote
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sat Nov 27, 2010
Sounds like you have encountered a standard addendum - recommend you align yourself with resources - agent and attorney - that specialize in distressed properties (shorts and bank owned). I'm finding that the sale are easier, not harder, than in the past.

Get the right resources working for you and your chances for success will rise.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
1 vote
Fred_stokes, Home Buyer, Santa Fe, NM
Wed Feb 22, 2012
Let me simplify my answer --

If you see anything supposedly in Nambe less than $200 per sq ft-- get a new agent. Something is very wrong.

Expect to pay much more in Tesuque.

If it is not ostentatious and gated and "exclusive:", if it is less than three acres, if no one sneers at your Accord, if it doesn't have two golf courses, if the roads are paved -- it is not Las Campanas.
0 votes
Fred_stokes, Home Buyer, Santa Fe, NM
Wed Feb 22, 2012
87506 is a gigantic and mixed zip code. Las Campanas, Nambe, and Tesque are generally great. Other neighborhoods range from middle to disastrous. Unforetunately, some agents and home-owners will tell you it is one of the great when it is disastrous.

Many of the foreclosed properties have been abandoned by people who got fooled-- moved in and then experienced the neighborhood.

Rule 1 Nambe if the bargain for great places, anbd you are not going to find one of these properties in Nambe. 90% of the owners don't have a mortgage. The other 10% think they are in heaven and will keep up their payments and you will pay full price. They will list for years and never take less than 90% of the listing price.

Tesuque is fabulously wealthy and nobody is getting foreclosed.

Las Campanas is gated neuveau rich, but the architecture is ridiculous pseudo Santa Fe style -- try Greek columns -- you might pick up a foreclosure.

Aldea is not Las Campanas and ridiculous -- if you want a nice place -- fork up the money for Nambe.

The probperty you looked at is probably trash -- the bank thinks you'll wise up and thus they asked you to sign that document.
0 votes
Keith Manson-…, , Milwaukee, WI
Sat Nov 27, 2010
Banks require these addendums in all situations. If you want to buy you will have to review the document and understand what the bank might do. Someone will buy the property under the banks rules. Most likely the clause you are concerned with is the out the banks want in cause the mortgage insurance company enforces its option to acquire the property in lieu of paying their claim.

It is best to have a buyers agents that understand the reo and foreclosure process to assist you in the purchase of distressed assists.

Keith Manson
First Weber Group
Certified Distressed PRoperty Expert
Metro Milwaukee

Http://www.milwaukeebailout.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Nov 26, 2010
Consider consulting with an attorney who specializes in real estate--he/she can best advise as to the addendum and possible options you may have--what is your agent advising...
0 votes
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