Vacations To Cabo San Lucas

You may not be aware that buying an REO, a bank owned property, is quite a different process then buying a property the old fashioned way, and it is extremely important that your Realtor understands the difference. Let me tell you why if your Realtor doesn’t know the vast difference between the two, how it can cost you a lot of money, and possibly cause you to all together lose your property.

When a bank owns a property, they have complete control over the situation. They have the ability to make the rules and do not have to follow any disclosure requirements. The bank will typically have you, the buyer, sign an addendum which will give them full disclosure to the process, and leave you with no protections.

They set out a timeline you, as a buyer, have to meet or face the consequences. While they don’t have to deliver anything until they feel like it. For instance, I have a bank owned property in escrow right now that I got approval on almost a month ago. Guess what? The bank didn’t open escrow until three weeks into the 30 day time period.

It took a full three weeks before we received my contract and addendum. Not so lucky for us that when we first signed into this contract, it stated that we would be charged $100 per day per Diem for every day that went past the thirty-day period!

They didn’t help us in anyway to meet our deadlines either. As you may already be aware, most short sales do not have a successful closing. Typically this happens because the listing agent that takes on the contract isn’t familiar with how a short sale works, but still takes the home anyway. In the same breath, REO’s can also turn out the same. In my case, the listing agent was very confident that he had all of his ducks in a row, and the bank was ready to close.