Tim Hicks (Texas)
REO appraisal assignments almost always require an REO addendum
. There are no detailed lists provided to the appraiser. The appraiser makes a detailed list on what repairs are needed and estimated cost to bring the property to average marketable condition.
What is an appraisal addendum Texas?
The form says if
the lender reduces the amount of loan
because of the appraisal, and the appraisal is equal to or more than the amount written in (2)(ii), the buyer covers the difference between the loan and the sale price.
What is a REO addendum?
REO is an abbreviation
for “real estate owned
,” and refers to real property owned by a bank and offered for sale. … Most REO addenda require the buyer to provide evidence of loan pre-qualification or proof of funds prior to the seller’s acceptance.
What is a bank addendum?
An addendum is
an attachment to a contract that modifies the terms and conditions of an accepted offer
. … Addendum are used to efficiently update the terms or conditions of an accepted offer that the buyer will be required to sign as part of the Contract, and YES, you need to sign them.
How many addendums must be attached to every contract?
Every TREC contract must have at
least one TREC addendum
.
What does REO mean in realestate?
Real estate owned
(REO) is the term for a property owned by a lender because it failed to sale in a foreclosure auction after the borrower defaulted on his or her mortgage. Banks attempt to sell their REOs using a real estate agent or by listing the properties online.
What is short sale addendum?
The short sale addendum is
for a seller of real estate that owes more money on the property than it’s worth
. Therefore, the seller is required to field offers from potential buyers and add this addendum to the purchase agreement which requires the seller to seek the creditor’s consent in order to sell the property.
Is it a good idea to waive appraisal?
Lenders might waive a
new in-person appraisal because the home’s market value was calculated so recently
. Waiving an in-person appraisal can make the underwriting process more efficient for both the borrowers and the lender.
How does an appraisal addendum work?
What Is An Appraisal Contingency Addendum? An addendum is a separate form that, once signed by the buyer and seller,
becomes part of the sales contract
. Appraisal contingency addendums are state-specific and allow buyers to move forward with their purchase under certain conditions they agree to.
What is the purpose of an addendum?
The function of an addendum is
to modify, clarify, or nullify a portion of the original document
, which could be as simple as extending the dates for which the contract is valid or as complex as redefining the payment schedules and deliverables.
What is an addendum example?
An example of an addendum being used would be
if the parties wanted to add something to the original document
. For instance, an individual who is purchasing a house may not want to purchase all of the furniture that is being left behind. However, after thinking about it further, he changes his mind.
Does an addendum supercede a contract?
Typically an
addendum supersedes that portion of the original contract that the addendum specifically addresses
. That’s a general rule. Whether it applies in your situation depends on the details in the contract, addendum and the surrounding circumstances.
What is the difference between an addendum and a counter offer?
There is often confusion amongst buyers and sellers as to what is a proposed amendment to a purchase agreement and what is a counter-offer. … There cannot be a counter-offer to an existing binding purchase agreement. Instead, the
addendum is simply an invitation from the buyer to amend the purchase agreement
.
When should an addendum be used?
An addendum is used
to clarify and add things that were not initially part of the original contract or agreement
. Think of addendums as additions to the original agreement (for example, adding a deadline where none existed in the original version).
Does addendum need to be notarized?
Generally, unless the terms of the contract specify otherwise,
a valid addendum requires the signature of all parties who signed the original contract
. This provides evidence that all parties agreed to the addendum, though for the agreement to be enforceable, all parties must also understand what they are signing.
