Assingnment clause and REO's - Posted by Randy

Posted by Allen Bailey on March 24, 2008 at 16:46:39:

It doesn’t matter what contract you use or what you put in the contract. The bank is going to require that you sign addendums that essentially will take away any assignment and a lot of other things you would like as well. A lot of these will say that if they get a higher offer then they can cancel the contract at any time.

We have represented many buyers with REO properties and it is always interesting to see what crazy thing the banks will come up with next. I just had to cancel a listing for a REO as the bank wanted me to put something in the Realtor comments that is against MLS rules and I need the MLS more than that bank.

So the only rule with REO’s is the golden rule. He with the gold (banks) makes the rules.

Allen Bailey
Re/Max at Mallard Creek
Licensed in MS & TN

Assingnment clause and REO’s - Posted by Randy

Posted by Randy on March 20, 2008 at 11:57:01:

Has anyone had trouble getting banks to accept offers with assingment clauses in the p&s agreement.

Re: Assingnment clause and REO’s - Posted by David MacGown-MI

Posted by David MacGown-MI on March 20, 2008 at 13:35:42:


you should be using the standard Realtor contract when making offers on REO’s(requesting to use your own contract because it is assignable is unproffessional and you should not do it.) the “and or assigns”
language will be crossed out as banks will not allow assignments, HOWEVER… the most common way around this is through a simultaneous closing but not all title companies will do this, you have to find an investor friendly title company. Talk to hard money lenders and ask about title companies they prefer doing business with.

and finally, James mentioned having to have proof of funds before making offers on REO’s…there is a loophole on that one also. Have a hard money lender/private lender write you a prequalification letter to be submitted with all your offers.

Best of luck,

Nope - not one - Posted by James - Michigan Investor

Posted by James - Michigan Investor on March 20, 2008 at 12:41:28:

That’s because not one bank will do this.

The only way you can buy a REO nowdays is via proof of funds to close. So, you will need proof of funds and your deposit check to close it.