Pay atty to look at addendum--waste of money?

From what I understand, the addendum can't really be changed if you want the bank to accept your offer. So would it be safe to just have your RE agent review it rather than paying your atty?

Edited: 06/26/2010 at 10:24AM

Anson Young

Wholesaler · Denver, Colorado

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Icon_minipost Nov 06 '09, 06:34 AM

Have the RE agent look at it, its not lawyer worthy IMO. What bank is it? Chances are I have it or have seen it before, as an REO agent.

Or you can email it to me (block out address if it makes you feel better) and I can tell if I have seen it before?

Edited: 06/26/2010 at 10:25AM

Scott Hubbard

Rehabber · Tucson, Arizona

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Icon_minipost Nov 06 '09, 07:03 AM

Battle of the contracts. REO lenders are notorious for submitting seriously seller-centric contracts. Welcome to the real world.

The problem is your point of reference. REALTOR'S contracts are broker-centric and are really neutral because the only party they protect are the brokers themselves. So when you compare a lender REO addendum to a typical broker contract, it can seem like they are looking for a pound of flesh.

The bottom-line is performance, if you have the ability to close, have a a 7 day due-diligence period, and have a finance contigency, you should be allright. Most asset managers want the property of their books and do not have the time to hold your hand, so if you get a good price and do your homework you should be fine.

Hiring an attorney is a waste of money because he/she is simply going to err on the side of caution and tell you to not sign. Asking your agent will also get you nowhere also, Lenders rarely will cowher to a real estate agent either.

Good Luck!

Edited: 06/26/2010 at 10:25AM by Scott Hubbard

Bienes Raices

· Orlando, Florida

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Icon_minipost Nov 06 '09, 08:56 AM

Thanks.

I don't' have a specific property yet, I'm just trying to learn everything about the process.

Is the due diligence the inspection period? Do you have to have something specific come up wrong during the actual inspection to back out, or can you back out for any reason during the 7 day due diligence period?

Edited: 06/26/2010 at 10:25AM

J Scott

Real Estate Investor · Atlanta, Georgia

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Icon_minipost Nov 06 '09, 10:39 AM

If you have a "due diligence" or an inspection period (they are the same thing), you can back out of the deal and get your deposit back at any point during that time.

As for reviewing the addenda, I would suggest that you can probably do that yourself. If you have any questions about the specific wording of anything in there, just post it here and I'm sure there are plenty of us who have seen the exact same addenda before and can clarify for you.

Edited: 06/26/2010 at 10:25AM

Bienes Raices

· Orlando, Florida

1933 posts
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Icon_minipost Nov 06 '09, 08:47 PM

Originally posted by J Scott

If you have a "due diligence" or an inspection period (they are the same thing), you can back out of the deal and get your deposit back at any point during that time.

As for reviewing the addenda, I would suggest that you can probably do that yourself. If you have any questions about the specific wording of anything in there, just post it here and I'm sure there are plenty of us who have seen the exact same addenda before and can clarify for you.

Thanks, that's good to know. One less thing to have to pay/wait for!

Edited: 06/26/2010 at 10:25AM