And it goes on to say, "However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law."

My other concern is having no recourse on right of redemption, so if the previous owner exercises his right after closing, I'm **** out of luck.So, my question is "Has anyone experienced these issues with a bank addendum regarding an REO purchase and how did you handle it?  

It’s a great way to learn more while doing other things such as exercising, driving, etc.Get involved with a local REIA groups.

Normally the lessor/Vendor would not sell a transferrable option, but if the option is not restricted, you could purchase the option from this individual and exercise it yourself.If the option is not transferrable - which is what I would anticipate - it may be possible to have the property sold to both of you when the option is exercised.  

Try not to tie-in substantial lessee improvements with the option exercise. 5.

Joining Bigger Pockets will hopefully enhance my education in real estate and be a motivational outlet to stop making excuses. 

In Michigan, the  redemption period is typically six months during which the homeowner may sell the redemption rights  or exercise the right themselves. 

Your tenants could exercise their option for higher rates and your CAP rate goes up.

It's not a 5 or 15 minute exercise, and it needs to be set up and files correctly to ensure Series are properly insulated from one another.

Germain Act which prohibits a lender from exercising the "due on sale" clause when a relative inherits a property applies ONLY if the relative (you in this case) is a person who occupies or will occupy the property.