REO Contract question

REO Contract question

Investor · Pompano Beach, FL · Member since 2016 · 18 posts · 6 votes

Hi everyone! I am buying a house in Broward County FL. Its a REO and I had to present my offer using a web site. Seems like the seller accepted my offer but with two concessions.

1-as is no repairs

2-seller may cure or mitigate violations and fines

My question is about the word "mitigate". 

Does it mean that if the seller attempts to cure and is not able to do so and just reduce the fine to certain amount I would have to pay for it? I am not a lawer and I am really confused why he used that word instead just say that he would cure the violations and lies. Is he trying to push some of these fines and violations on me? The house has a code violation lien of 270k so I don't want to play with that. The contract have not been generated yet so I don't know how they are going to word it but if I accept the offer I have to pay $150 to the web site as a eletronic fee. Please help as I have to respond until tomorrow. 

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Wholesaler · Plantation, FL · Member since 2014 · 194 posts · 121 votes
10y

When they use the word "mitigate" that means.. they are going to try to lower the violations/make less severe. Beware you could be walking into a very bad deal.

Carlos

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  • Wholesaler · Plantation, FL · Member since 2014 · 194 posts · 121 votes
    10y

    When they use the word "mitigate" that means.. they are going to try to lower the violations/make less severe. Beware you could be walking into a very bad deal.

    Carlos

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y

    I assume you're using an agent for this, since it's going thru Offersubmission.com? By the way, they are just a communication platform. You have no liabilities accepting the offer thru this.  After accepted, the bank will send you the FARBAR along with their addendum/additional clauses.  That is what you'll execute to be "under contract". Those documents will detail whether you are receiving clear title or not.  My advice, as always, is to use Your title co., to make sure you get proper title insurance.  

  • Tom DayPro Member
    Investor · Killington, VT · Member since 2010 · 28 posts · 16 votes
    10y

    I have been involved in the mitigation process in Broward on several occasions. The banks representative must solve the code violation and go before the board to settle the lien. I had two that were in excess of $200k. In both cases, as the banks agent, I was able to get the fines reduced by 90% or more. I don't think you need to worry about being on the hook for any of that if you are getting a warranty deed. By all means use your own title company or attorney. 

  • Investor · Pompano Beach, FL · Member since 2016 · 18 posts · 6 votes
    10y

    That's why I love BP. Help when we need it. Thanks to you all for taking the time to answer my question. Let me know if I could help in any way. 

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