Buying a Foreclosed Property in Murrieta Ca.? Read the Banks Real Estate Sales Addendum.

 Purchasing a Bank Owned Foreclosure, another term is REO, property is very different in many ways than a standard purchase. The sale will still proceed to escrow and Title Insurance, escrow instructions, funds deposited into escrow and things such as this will be the same. In a lot of ways things will be the same but buyers and their agents need to read the sellers addendum's and become familiar with them at the very beginning when your offer is accepted.

 When your offer is accepted the seller will generate their own Real Estate Addendum with the terms spelled out in it. These addendum's will over ride the California Real Estate Purchase Agreement that your offer was submitted to them as long as the addendum does not violate State law. Since My partner, Darla Espinoza, and I list many REO properties we get calls from agents representing buyers who didn't read the addendum's and complain after we are in escrow that such and such item is not right with the transaction.

 Since we list properties for Fannie Mae let me give you an example of the most overlooked item in Fannie Mae's addendum's. Since many people don't re key their new home after the close of escrow Fannie Mae has for many years taken it upon themselves to make sure the re key is done. Paragraph #23 states that if the property is on a master key code, which they are, the property is to be re keyed prior to the close of escrow and the cost is to be borne by the Purchaser. In about 80% of my Fannie Mae transactions I get a call from the buyers agent complaining about this as it shows up on the buyers HUD1 closing statement. I always let the agent know at the very beginning of the transaction this cost will be there but maybe they forgot or don't pay attention but never the less they act surprised.

 My buyer clients are always informed through out the REO process but it's the agents duty to inform their clients. Don't be afraid to purchase a REO property but please do yourself a favor and read the Sellers addendum"s and use the services of an agent who is familiar with the REO process.