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Updated over 8 years ago, 04/22/2016
WHAT THE HECK? Fannie Mae being shady?
Hey guys! I am in the process of getting an REO under contract through Fannie Mae, and LAST MINUTE they sent me this bogus Real Estate Purchase Addendum that TOTALLY negates the terms in our agreed upon offer.....
My agent is telling me its "standard" - but I am refusing to sign unless it can be modified in a way that doesn't contradict VERY IMPORTANT TERMS in our agreement. Basically they now want me to forfeit my earnest money after inspection if I don't like the condition of the house. But that ISN'T what we agreed upon. And verbally they are like "oh ya, well this is just a form, of course you'll get your earnest money back if you don't like the inspection" but thats NOT what the addendum says, and I care little for "taking someones word"....
My agent is telling me that they just "won't" change the addendum and I have to sign if I want the house. My attorney says don't sign unless they make his suggested modifications. I'm being told that this is just the way REO's are.....is that true? They all agree to one set of terms and then sneak in a new addendum last minute? At 5pm on a FRIDAY none the less when they want it returned Monday AM.....And of course they increased the earnest money to 10% instead of 3%....
"The purchaser waives the right to avoid the sale based on the condition of the property" are the exact words that are giving me pause in signing that addendum. Despite the fact that the offer gives clear instructions on 10 day due diligence yada yada. And of course the addendum supersedes the contract/offer.
Any one know whats up?