In almost every REO deal the bank will counter offer with their own addendum which will contain significant changes to your offer. Some of the terms you will see in the counter-offer will include such items as:
- In the event of a conflict the bank's terms will prevail. What does that mean, well it means that the original contract is basically uselss and the seller's addendum will represent the entire agreement between the parties
- The bank will deliver a "Special Warranty Deed. Meaning, the bank only has to clear title issues for the time period in which it was the owner of the property. Any title issues that existed prior to the bank's ownership become the problem of the new owner and their title insurer.
- You MUST use the the bank's title agent. If you go for this you are getting only what the bank is willing to give, which is not marketable title, but merely insurable title. You are NOT REQUIRED to use the bank's title agent and you are urged NOT to use the bank's title agent UNLESS you know for a certain fact that the title agent has completed a full 60 year title examination and has cleared all prior title issues. It is definately in your best interest to use a neutral title agent to insure to yourself that you are not buying into a problem that you will need to deal with in the future.
Protect your client. Call on us to complete your REO transaction. With more than 50 years combined experience, most of it in transferring REO properties, we will provide your buyer the assurances of good and marketable title that the seller's title agent is not in a position to offer.
CHARLENE PERRY
The Preferred Title Group, Inc.
3605 E. Joppa Road
Baltimore,MD 21234
410-663-7444
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