What does it mean with MLS listing says "All bank addendum . . ."

Question

will be generated after contract acceptance."  Can I interpret that as this listing is open to assignee language in the contract?

Jeff Rabinowitz · Answer

The bank addenda will usually state that they supercede any purchase agreement you submitted.  As Wayne posts above, the addenda will state that that the bank has no knowledge of any defects (or anything really), that anyone who stated anything about the property was not authorized to and that the bank won't stand by their statements if they made any.  It will also state that the buyer is purchasing the property as is (the addenda will state this several times).  If you wish to have an inspection do so before signing the addenda.  The banks will not usually repair anything.  They may also state that they will not pro rate taxes or pay closing costs or transfer taxes despite what is traditional in your area.  On rare occasions you may be able to change some of this but it is much easier to adjust your offer price downward to cover the additional costs.

Savannah Leigh · Answer

I flip REOs under the holding terms by actually opening an LLC, and selling the LLC.  No change of name on deed, bank doesn't care....or know....usually

Mark Ferguson · Answer

Wayne Brooks, Actually 95% of banks do not generate a counter/addendum until they verbally accept an offer.  After the bank verbally accepts an offer they create the addendum which is custom to the offer that was accepted.

Bill Gulley · Answer

You can flip them but not as an assignment, you need to buy them and due to holding requirements you may not fund another settlement usually for 90 days. You could lease it the next day and put it under contract or have an option, but you can't close that transaction until the title restriction expires. REOs is not a good starting point for new investors IMO, do a few other deals before taking on the brain damage with banks. Good luck.. :)

Christina R. · Answer

Thanks for the replies.
So does this mean you cannot flip REOs?

Wayne Brooks · Answer

Agree with Joel, it simply means the listing agent was probably too lazy to upload all the addendums, or just didn't want to reveal them yet.  The addendums will say the bank knows nothing about the property, will not make any normally required disclosures, you're on your own, etc.  Also, there will be the deed restriction (no flipping) along with, this is important, what kind of deed you will get.  If they select the title co., beware.  They will generally exempt out any problems with the title (no coverage), and if you're a cash buyer and don't notice.....oh well.  If you're a financed buyer, your lender's underwriter will catch it and deny the loan.

Joel Owens · Answer

NO

Contract acceptance could mean a verbal acceptance from the bank and then they send all the docs including the bank addendums to follow.

What will be sent will be depending on the bank. It's doubtful you will get away with assigning anything or adding that in. Banks sell thousands of properties a year and will not let a wholesaler lock up their property for nothing.

What does it mean with MLS listing says "All bank addendum . . ."

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