Buying REOs in This 2012 Market ? Best Beware the Psychotic REO Addendums by Mik Cohen

I attached an FNMA 13 page addendum that, essentially, has the buyer sign away many VERY significant rights AND enables FNMA to control how much profit you can make, for the following 90 days, after you purchase their house. READ THESE ADDENDUMS before you purchase that house ! You may get stuck and find yourself with the "deer in headlights" look on your face when you realize that asset is more of a liability.

g_-_reo_documents1.pdf
File Size:	74 kb
File Type:	pdf

Download File

---

Check out Clause #14 -
For flippers, like me, who are in and out of a property in 6 weeks, or less - this clause can really can cost you serious $$ and possibly more - depending on how much capital you have available for other projects.

This is one of many such psychotic addendums you'll need to sign off on, surrendering specific rights.
Seems with all that bailout $$ these lenders got, like Fannie and Freddie, they shouldn't be worrying about how much $$ you're making on your deals - they should be concentrating on liquidating the properties to buyers who have made acceptable offers and getting back on their own damn feet - leaving investors to help move the housing market into better times - like investors have always done in such times of strife.

However, if Fannie and Freddie - AND others, want to control how much you make - then let them fork over the renovation costs and contribute to our holding costs.
Of course, such contributions would be at the option of the buyer to choose yay or nay.

Remember - read those addendums to confirm that the deal IS the deal you think it is.
In my travels to other real estate websites and forums, I'm amazed at how many investors never read those psychotic addendums and it has cost some of those investors their business -

Make 2012 your best year yet -

Mik,
New To You RE, LLC