Three or four times a week I get an email inquiry from consumers who have read my prior posts on buying REO's. (See the most popular of these posts at: http://therealestatewhisperer.blogspot.com/2008/08/reos-everything-you-need-to-know.html or http://therealestatewhisperer.blogspot.com/2008/12/types-of-sales-seen-in-todays-market.html). Specifically the email requests are for an addendum that I reference in these posts.
I am always hesitant to give it directly to the consumer. Laws vary greatly from location to location, and I don't want to be accused of giving real estate advice in areas where I am not licensed. Each bank addendum is different, and therefore the addendum should reflect the language specific to the rest of the contract. The addendum is intended to serve as an example, and not a form that should be used carte blanche in all REO transactions. Then, I feel bad when I tell a consumer to have their agent contact me directly to obtain the addendum. I feel worse when I am overwhelmed carrying for my own business and drop the ball and fail to send it for them; and I confess that I've done that a couple of times inadvertently. I fear it will be more common, as I've switched primary computers and it is a difficulty for me to go to the other computer to forward the addendum.
You see, I am using the addendum less because in our local market, traditional sales are returning (Hip, Hip, Hooray), short sales are becoming more successful and I am simply working less in REOs. I currently have one REO listing - hits the market today; but all of my deals that are under contract for the moment include contracts for purchase in traditional sales or new home sales. A new day is dawning in Northern Virginia.
In any case, I think I've come up with a solution; as I know some areas are just now being hit by floods of REOs and you really, really need this! I found a place where I can store this addendum online and make it available to you. Here it is:
http://h1.ripway.com/vchrisner/Addendum to Contract - for reos.doc
Remember, reading blogs and educating yourself is great, but does not replace competent real estate or legal representation - ever. There are just too many variables; and a blog can not possibly address them all. However, the information you get from my blogs, and others, should serve to stimulate educated discussions between you and the professionals you are choosing. You SHOULD NOT know more than your agent. If you do, you should get another one. I firmly believe the value of an agent is advice. Sure, there are service related conveniences - access to listings, lockboxes, forms, affiliated companies that may offer free or low cost services, etc. But, what a Real Estate Agent should bring to the table, above all else, is their knowledge.