If you are simply re-wording the "filled in " or "hand written" on the pre-printed standard purchase agreement, have a licensed realtor help you, and explain
I still highly recommend that any buyer trying to negotiate a transaction of this type be represented by a Buyers Realtor who is familiar with REO transactions in the area.
Domaine Real Estate
In most cases, the buyer has had the opportunity to conduct inspections and gain loan approval plus the chance to cancel an escrow if they are not satisfied or the loan isn't approved. As long as a buyer is within specified contingency time frames, there are generally provisions for the deposit to be released.
If the buyer defaults AFTER removing contingencies then most of the addenda I have seen make it easier for the bank to retain the earnest money deposit wthout requiring any further signatures as would be customary in a "normal" deal.
Each bank has its own procedures and addenda and your agent should be able to guide you in this matter. In many negotiations between buyer and seller it is not unreasonable to negotiate terms, but I wouldn't hold my breath trying to substantially reword the boilerplate purchase agreement of a lender. Below, Rick makes an important point about the roles of realtors and the roles of attorneys in these matters which very much applies in every transaction. With REO's however, the degree to which minor terms that might be negotiable by you in a regular sale, is slim to none. It is just not practical for the bank and therefore not likely practical for you.
Since realtors are normally not attorneys and therefore are not licensed to practice law, changing wording for a legal document could be considered practicing law without a license....a very serious offense. Agents should think long and hard about "wordsmithing" commonly accepted legal documents. There is so much to lose.........
Doing an addendum is one thing but crossing out paragraphs and changing wording needs to be done only after consulting an attorney.