Re: purchasing an REO

I wonder about advice to the effect that if the deal doesn't seem reasonable, don't do it.......you say you are in escrow; that tells me you've signed a contract. Before taking any step that looks like breach of contract to the seller, ask yourself and your agent what the consequences might be! You might forfeit your deposit, or a significant part of it.

The lesson is to handle possible issues like pest infestations and discrepancies between the disclosures and the realities before signing the contract and opening escrow.

Actually, in this case the cost to correct the problems doesn't seem huge, so a part of me says advise them just to bite the bullet and accept the termite costs and put in your own smoke alarms. On the other hand, your agent is wrong in saying that banks are exempt from everything and won't negotiate. The truth is more like this: banks are too monolithic and too dumb to care about making a particular sale on good terms. Rather than argue with you over a $3,000 concession on a $300,000 sale, they'll tell you "hell no", kill the deal, and next week take $275,000 from someone who will meekly consent to all their BS.

Re: purchasing an REO

Banks, like anyone else, try to get away with whatever they can. The bank might very well not be willing to give in, but that does not necessarily mean you have to give in. If the deal is unreasonable and unacceptable, do not do it. All the contract terms apply -- if you have difficulties and need to retain an attorney, feel free to give me a call.