We signed a contract addendum after 45 days of the 1st bank accepting our offer on a short sale?

Question

Our Agent gave us a contract addendum that the 2nd bank is asking us to sign. We have been waiting for over 45 days to hear from the second bank and finally we heard from them today. They are requesting that we sign an addendum. The addendum state that "The property is being sold as is", "The seller may cancel the addendum agreement at anytime prior to the ending date of the contract agreement without advance notice to the broker". "The parties agree that under no circumstances will the sales contract be assignable" and it also states that, "The parties agree that this addendum together with the Sales Contract shall constitute the entire and sole agreement between the parties.

Can someone please explain to me what this all means in english. I have no idea what I am signing. Is it a good idea to sign? My husband and I really like the house, but why are we asked to do this?

Please help.

Answer 1

I will never do another short sale as long as i live.  You are agreeing to some terrible contract terms in this addendum.  No attorney would allow you to sign it. But you will sign it or you won't buy the house.

If the air conditioner breaks and the hot water heater breaks and the house floods,  it is yours.  As Is means nothing gets fixed.  What a lousy deal.

The seller (2nd bankj) can cancel the sale at any time for any reason. What person in their right mind would sign that.  The 2nd lender is fighting with the 1st lender to get a share of the money.  The 1st won't pay them a dime.  So you are a pawn in their power struggle.

Assignable means that you are planning on transferring the sale to a 3rd party.  You are not doing that so it doesn't apply. /

Answer 2

OK This is simple, and your agent should of been able to explain it to you. 45 days is normal since there are a lot of legal hurdles that must be complied with and a price established, however the people who handle this 4 the bank has 200 files on their desk, it takes time! Now evidently the first mortgage holder forclosed and if the 2nd mortgage holder did not take over as a forclosing  party their entire investment in this property would be wiped out, this is why you are dealing with the 2nd mortgage holder, they feel that they can recoup some of their investment, however this does not mean they are willing to invest money in property to fix anything, this is normal terms 4 short sales, they do not want any contingency's on contract such as approval of home inspection or termite inspection. (HOWEVER) you can approach it this way, state that you will sign after you are granted access so you can perform termite and home inspection so there would be no need for contingency  and appraisal , your  mortgage lender requires this!!!! That way you know condition of property to avoid making big mistake and peace of mind. These are good buys sometimes 4 good DIYS 4 small repairs, if large items found walk away or simply adjust price, yes adjust price  downward. They want the option to cancel until  closing incase they receive better bid. They are pretty hard on some stuff but some is negotiable.The reason for cancel clause is they will drop you if they recieve better bid untill closing. Make shure your financing is good and comitted. 30 years real estate, JERRY. GOOD LUCK, hope this helps.

Answer 3

The bank is playing CYA so that it won't be on the hook if the buyer finds some hidden problem with the property.