| Recently, I had a client submit an offer to purchase a | | | | "standard" purchase agreement form. Each bank has |
| home for his personal residence and gave the seller (it | | | | its own addendum form, but similar provisions are used |
| was a bank owned home represented by an agent) a | | | | by virtually every bank across the country. Those |
| deposit of $1300. My client was not able to secure | | | | addenda give the buyer few rights and the banks all |
| financing, and his realtor told him that deposit would not | | | | the rights. Because my client signed a similar |
| be refunded. | | | | addendum, he had few rights. |
| That is not a fair result and is contrary to the law in | | | | Interestingly, financing was not normally a contingency |
| most states. However, this is common in situations | | | | in buying an "REO" in years past. However, today, |
| where the seller is a bank. We call these REO sales- | | | | banks are desperate to sell their REO inventories and |
| "Real Estate Owned." | | | | will now consider offers with financing contingencies. |
| My client was talking about earnest money, which is a | | | | Inthe end, every contract turns on the language within |
| typical requirement for a buyer in any real estate | | | | the contract itself, in the absence of a state or federal |
| purchase, but especially when buying a bank-owned | | | | law to the contrary. So, read your contracts carefully. |
| house. | | | | Expect the worst, and hope for the best. And call your |
| Normally, when you purchase a home from a bank, | | | | attorney before you sign important legal documents. |
| you sign a special addendum to the normal or | | | | |