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Updated over 8 years ago, 07/27/2016

User Stats

5
Posts
0
Votes
Curtiss Sykes
  • Specialist
  • San Jose, CA
0
Votes |
5
Posts

REO'S

Curtiss Sykes
  • Specialist
  • San Jose, CA
Posted

Hello,

I would like to know what's the one contingency i can add to a real estate purchase contract when dealing with REO's in case i have to back out of the deal if my end buyer decides to back out of the deal. I need one good solid clause.

Thanx

User Stats

60
Posts
46
Votes
Lance Hulsey
Agent
  • Real Estate Broker
  • Scotts Valley, CA
46
Votes |
60
Posts
Lance Hulsey
Agent
  • Real Estate Broker
  • Scotts Valley, CA
Replied

Contact a good Real Estate Attorney and discuss what you are trying to do. He/She will tell you if it is feasible and will be worth the price if it avoids future lawsuits.  

  • Lance Hulsey

User Stats

10,239
Posts
16,091
Votes
Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
16,091
Votes |
10,239
Posts
Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
Replied

'subject to partner approval'

It is a weasle clause as John mentions. I wouldn't accept that as a seller.

Always treat your natural person sellers with dignity. Don't waste their time if you don't have a buyer lined up.

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User Stats

2,067
Posts
900
Votes
Percy N.
  • Developer
  • Philadelphia, PA
900
Votes |
2,067
Posts
Percy N.
  • Developer
  • Philadelphia, PA
Replied

Curtiss Sykes with REOs you are dealing with banks, so in a hot market they generally will have cash offers with no contingencies.

However , sometimes you can put a general appraisal clause but it usually is only for 10-15 days.

User Stats

617
Posts
456
Votes
Karen O.
Pro Member
  • NYC, NY
456
Votes |
617
Posts
Karen O.
Pro Member
  • NYC, NY
Replied

And be prepared to walk away as some banks don't allow edits to their REO contracts.

User Stats

5
Posts
0
Votes
Curtiss Sykes
  • Specialist
  • San Jose, CA
0
Votes |
5
Posts
Curtiss Sykes
  • Specialist
  • San Jose, CA
Replied

Hello,

Thanx for the info everyone. I will see what happens, scary but what the hell. I have to give it a try. 

what about foreclosures? is that easier than REO's?