I always provide my buyers with a couple of attorneys names if they have questions.  But having sold REOs for 15 years now that form doesn't scare me and I think I have a pretty good grip on explaining it.  I also make clear to buyers that the party protected in that document is the seller.  But when they start talking about what part they want to strike I laugh and let them know... so sign it like it is, no buy foreclosure.

     I warn Buyers that HUD, Fannie and Freddie, and for that matter any REO, may require a contract that is extremely favorable to the Seller.  They should have an Attorney review it for them before I submit it.

These forms are in place to protect the seller. I haven't had to read one recently. Thank goodness for that. Is there something new in there we should be concerned about?

It has been a few months since I read it but it is terribly redundant and is all in favor of the seller to the point that I think it says the seller can even decide to sell to someone else even if under contract.

As I was reading your question, I was trying to remember the last time I showed a REO listing let alone had a bank-owned transaction.  They haven't been a big part of our inventory for some time.  

Well I don't have that part memorized but all those forms are written for the sellers benefit. If the buyers aren't doing anything sneaky, they have nothing to worry about.

You should be more specific as to what you are offended by.

Hella M. Rothwell, Broker/Realtor® - interesting.

Not much into REO. Don't we keep up-to-date with what's going in RE market? Thanks to ActiveRain.

I remember that form; I used to ask them "how bad do you want it?" I had several sign them with no issues though. If everyone behaves, they are moot.

Hella, I am not a fan of the REO addendum.  They are scary.  I advise my clients just as you do.  Go see an attorney. 

not recently

we leave the legal work to the attorneys....each of our clients has an attorney.... we insist...

I have not done one recently.

No.  It does not apply in our great land.

I haven't, but only because I've never done an REO.

I just follow procedures when it comes to working with organizations lilke Fannie Mae.  and Freddie Mac.   Things are constantly changing and I find it best to adhere to these changes and keep moving.  As far as my clients, if they want to purchase one of their properties, they are going to have to deal with these changes also.

For a first time buyer, I'd advise to stay away from anything other than a standard sale.

Not recently no, I sell very few REO's

Yes, good idea to refer to an attorney.

I will expect to read it later today. I am sure it is all one-sided.

If I am working with a buyer who is looking for a foreclosure I send them the Fannie Mae, Freddy Mac, and HUD addenda ahead of time  and have them read it carefully.  I also tell them to seek legal advise as the 12 page Fannie Mae Addendum is loaded with "legalese".

Fannie Mae is much more buyer friendly than HUD and Freddy Mac, but lately the F.M.  asset managers seem to be going strictly "AS IS" in our area.  The banks are notorious for not releasing their own addenda so the buyer can read BEFORE considering making an offer. 

It's been so long since I sold an REO that I can't say I've looked at this in recent memory.

Have not read it, but I am sure if it was a standard one sided govt form then it was set up to be scary.

Yes it has been read and my rehabber's know it and explain it to new clients and if any technical questions to contact an attorney.

Thanks for sharing your experience.

I tell all my clients to go conventional if possible