Posted by Rich-CA on October 15, 2007 at 18:44:04:
I have been given REO contracts from HSBC as trustee for Wells Fargo that said they can change any of the terms and I agree to it in advance. I modified their contract to negate that and specify that I have to agree to their changes before they can be part of the contract. Deal sat on the table until I had to abandon it due to my 1031 Exchange timeline running down.
Similar clause in some others I refused to sign and none of them would use the standard forms.
Posted by Mary (CA) on October 15, 2007 at 09:47:03:
Hi all,
Local paper had a story about a couple buying a CFC REO and that CFC had changed the terms of contract during the negotiation without agreement by buyer. I didn’t know what that was about (and didn’t worry about it, figuring it was an error in the article).
So now I was planning on making offer on an Ocwen REO, and checked their website before doing do. I found an addenda for CA properties that in effect made entire contract illusory (i.e. they can unilaterally change or terminate contract).
Other than not signing the addenda (or omitting the omnibus? clause), is there a solution to these?
Having a seller changing terms at their whim during a negotiation doesn’t sound like a constructive use of time to me, and I may just skip.