Allow me this opportunity to vent about the pit falls of the foreclosure transaction.  As a buyer's agent, I am often times dealing with overworked and under staffed listing agents who are tackling the daunting task of trying to represent banks to sell foreclosures.  I find myself in the unenviable position of trying, many times in vain, to protect my client's interests in what can often times be a very frustrating transaction.

The Regional Sales Contract - Throw it away, rip it up, use it for toilet paper - it's not worth a darn.  The bank's addendum supersede's this contract at almost every turn.  Not even sure why we have to bother with the process.  Perhaps we should just make an offer on loose leaf paper - "Buyer will pay $100,000 to buy this piece of garbage located at ABC Main St, Anytown, USA on or before Anyday, 2008 using conventional financing.  Bank addendum raping buyer of any rights to legally get out of this contract is to be attached to this contract offer."  This is a dramatization but I'm not too far off the mark - trust me on this!

The Deadlines - Well, if Trina the Asset Manager happens to be out on Friday and her back up is behind in her files, you can disregard that contingency you are trying to remove to be signed by the deadline.  IF we are lucky enough to get the bank to respond to the addendum in a timely fashion, then I suppose you have a chance in hell at getting it signed and returned before settlement.  But don't hold your breath.

The Negotiations - Listing agents sometimes try in vain to articulate the severity of a negotiating point.  "Yes, a failed septic field is a HUGE deal and by the way, now this inspection report that the buyer paid $500 for is notice of a building code violation that you (the seller) will have to either fix or disclose to the next buyer."  Banks response...."Well, we won't agree to any repairs until we know how much it will cost to fix....even though settlement is scheduled for this Tuesday." 

The Phone Calls and Emails - "Please call me back! This is the 4th call I've made today to find out if the utilities are on so my client can get out there tomorrow by the Seller's DEADLINE to do the home inspection."  Begging and nagging have become a normal routine.  I'm actually quite good at it!  Just ask my husband!

Title Trouble - Don't be surprised if the settlement attorney cannot get the deed in time for settlement.  In some cases, the bank's title company is so overwhelmed with files, they simply cannot get to them all and if there is a discrepancy - a lien or judgement against the property - then it could take considerably longer.

They have to fix this, don't they? - Um, no, they don't.  Read that lovely little bank addendum that essentially says they don't have to fix anything unless perhaps, it's a direct violation of a building code or regulation in which case, the bank (seller) probably has the option of terminating the contract....even if you've already given your property manager at your apartment notice that you were vacating on the 20th of the month.

In the end, and I will ALWAYS recommend this, TALK TO A REAL ESTATE ATTORNEY PRIOR TO SIGNING THE BANK ADDENDUM.  As a Realtor, I have the distinct honor of working with your through your purchase.  However, at NO TIME am I permitted to represent you as an attorney and give you legal advice.  Because every bank foreclosure has specific language added to their bank addenda which is written by the banks' attorneys to protect the bank, you MUST not assume you have the same rights as in a traditional transaction.  Even if you've bought a home before, this will be an experience you must understand thoroughly so be prepared to seek legal advice to know what your rights are AHEAD OF TIME.  Don't wait until you are at the end of the transaction only to find out the bank will not comply with your requests....often times, they don't have to.

Irene Morales Ward, Northern Virginia Real Estate