Buyers Be Ready to Sign Bank Addendums in Ann Arbor

One question we get asked at the Missy Caulk TEAM in Ann Arbor occurs when we are working with a buyer purchasing a foreclosed home.

Buyers ask, “Can I Mark Out Something on a Bank Addendum”?

After your buyer’s offer is accepted on a foreclosure the bank will send over their own addendum’s. It can range from 10-48 pages of Bank Addendum’s.

We strongly encourage our buyers to have their Real Estate Attorney review the bank addendum’s before signing.

Most of the attorneys here in Ann Arbor that I work with are quite familiar with the addendums. Sometimes the buyers would like to mark out a paragraph or change some wording.

We tell them that the bank will not accept scratch throughs or mark-ups and the Attorneys confirm this.

Banks are selling foreclosed houses all over the United States and they have their own forms to make it consistent for them.

Typically the one big hang-up for buyers is the paragraph about not closing on time and the per diem rate if they fail to do so.

The buyers feel out of control and can’t do anything about the promptness of their lender getting it closed on time.

So they ask if they can mark that sentence out?

Nope

“Just stay on top of your lender, make sure all the paper work they ask for it sent to them promptly. Tell them to go ahead and order the appraisal.”

The listing agents on the foreclosed properties say that banks don’t impose the per diem rate “if” it is only a few days late, but there is no guarantees.

There are many advantages in terms of price when purchasing a foreclosed home in Ann Arbor .Not being able to change the bank addendum’s is one area that the buyers must be willing to accept.

I am submitting an offer(?) in the AM for a foreclosed home. It is basically a one page document, more like an application. (Now that is a first for me.)

The listing agent said they will review the application, and if we are chosen, give us 7 days to do inspections. During the 7 days they will not entertain any other offers. If the inspection is fine, then they will send over their bank addendums for us to sign.

Will we be able to change the Bank Addendum’s?

Guess what we will tell them?

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4 thoughts on “Buyers Be Ready to Sign Bank Addendums in Ann Arbor

  1. Hi Missy – great article for your buyers. I mostly represent buyers in Lakeland Florida and when the offer is submitted and accepted here comes the endless pages of the bank addendum that I firmly tell my clients to have their real estate attorney look over but no strikeouts/changes are allowed to the language of the addendum.

      1. true, that is a concern, however, that is where an experienced buyer’s agent can ease their mind by informing them of their options and staying on top of the tasks at hand. More importantly communication between the buyer’s agent and listing agent is also key to a successful closing.

Thoughts?