Bank Addendums - Buyer Beware
Once you have submitted the offer for your bank owned (REO) home you start waiting for their response, as you would with any seller. In the case of a private party seller you might get a counter offer requesting a change to a small handfull of points in your original offer. You would then start, usually with your agent, hashing out the finer points of the offer and finding that middle ground with the seller. This is how Real Estate Deals have typically gone in the past. In the case of the Bank Sale you will often receive an addendum of 10 or more pages with lots of points covering every imaginable part of the sale.
It is these addendums that require your UNDIVIDED attention. I have seen outlandish changes in the terms of the original offer. Waiving rights to inspection, requiring inspections within a certain time frame, reducing the number of days you have for inspections. Changing what the bank will pay for, making deposits non-refundable and more. Once these addendums show up be sure that you read them through very carefully and ask that your agent does too. Your good deal won't be such a deal if you miss something important that radically changes your offer or your rights under the original offer.
Most Realtors are well versed in their state contracts that they write everyday - not all are going to know these addendums forwards and backwards. Most are written by people in States other than the one the proeprty being sold is in. There may have be little if any regard to the laws of your state when the addendum was constructed. My best suggestion is to read it over yourself and then make an appointment with your agent for the two of you to go over it together. Ask your agent what they found in the verbage that raised red flags for them. Talk about it and if you both cannot find an answer seek outside assistance from a Real Estate attorney.
Don't be in a rush to sign away what you thought you had already negotiated in your purchase agreement.