Is anyone NOT signing the BOA addendum?

I know there was a discussion about this addendum recently, but I can't find it.  I THOUGHT I saw someone say they just weren't signing it.  Has that worked? 

 

I got an addendum from BOA last week and the dual agent part was removed, but this addendum overall is crazy.  It states it SUPERSEDES the purchase contract too. 

 

That means my paragraph on automatic 30 day extension if title isn't cleared can't happen. Supersedes the purchase contract?  That would actually mean my purchase contract is NOT valid.  Shouldn't it say SUPPLEMENT?

 

It also states no alterations, modifcations ...are valid unless signed by FHA, VA, government agencies, etc.  I mean if I increase the price and the buyer and seller agree, I have to wait for the FHA, VA or other agencies to sign it??  It makes NOOOOOOO SENSE the way it's written.

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Permalink Reply by Travis Davies on July 1, 2011 at 5:01am
If you have one send me a copy. I have some good contacts at BAC that should help clarify things.
Permalink Reply by Smitty on July 1, 2011 at 6:18am

Ok on the first one it basically stated you couldn't be a dual agent.  Now this seems to be a new copy and that verbiage has been removed but here you can see this was clearly poorly written:

"This Addendum to Purchase Contract is entered into and is effective as of ___/___/___ by and between, Seller(s),

Buyer(s) Seller(’s’) Broker/Agent and Buyer(‘s’) Broker/Agent(hereinafter referred to as “the Parties”) and shall be

deemed to amend, modify and supplement that certain Contract Dated ___/___/___ by and between Seller(s) and

Buyer(s) (the “Purchase Contract”)."

First only the buyer and seller are PARTIES to the purchase contract.  It says that the AGENT is a party to the purchase contract, yet no where on this first form am I to sign.



"The Parties acknowledge and agree that this Addendum together with the Sales Contract shall constitute the


entire and sole agreement between the Parties with respect to the Sale of the Subject property and supersede

any prior agreements, negotiations, understandings, optional contracts, or other matters whether oral or written,

with respect to the subject matter hereof. To the extent that any term or condition contained within the Short

Sale Contract is contradictory or inconsistent with this Addendum, the Parties agree that this Addendum shall

supersede. No alternations, modifications, or waiver of any provision hereof shall be valid unless in writing and

signed by Parties, FHA, VA, government agencies, any Investor, and/or mortgage holder, hereto."

Ok, where do I begin?  If this contract SUPERSEDES the purchase contract then it TAKES PLACE OF it rendering me with NO PURCHASE CONTACT?!?!?!?!   It cannot supersede it.  It can be a supplement.  Then the last line is ridiculous.  So if I change the purchase price, I have to get in writing from FHA, VA, governmnet agency..blah blah?????  It's not possible. I can have the buyer and sellers agree and sign off, but this addendum is a joke.

I can see why no one wants to sign it.  It makes no sense.  there are other things in the contract that I could go on about but this is all I can muster at the moment.

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Permalink Reply by Wendy Rulnick on July 1, 2011 at 7:45am
If it is so poorly written, how could they even enforce it? Did someone write it on the back of a napkin?
Permalink Reply by cassie on July 1, 2011 at 8:29am

The BofA addendum says that this addendum supercedes any contract that contradicts what is in their addendum. It doesn't mean that it null and voids ALL prior contatracts :)

 

Permalink Reply by Smitty on July 2, 2011 at 12:45am

Cassie supercedes means "takes the place of" it doesn't mean SUPPLEMENT.  In the first portion of the contract it does say "supplement" which makes a bit of sense.  Also,it  DOESN'T say it supercedes ANY contract.  It says it supersedes the SHORT SALE CONTRACT....Ummmmm WHAT short sale contract?  Do they mean purchase contract?? Sales contract??  I shouln't have to try to INTERPRET an addendum.

 

The last paragraph makes NO SENSE. 
"The Parties acknowledge and agree that this Addendum together with the Sales Contract shall constitute the
entire and sole agreement between the Parties with respect to the Sale of the Subject property and supersede

any prior agreements, negotiations, understandings, optional contracts, or other matters whether oral or written,

with respect to the subject matter hereof."

It's saying it SUPERSEDES any prior "agreement" in this paragraph...NOT the sales contract and then here:
" To the extent that any term or condition contained within the Short  Sale Contract is contradictory or inconsistent with this Addendum, the Parties agree that this Addendum shall

supersede. "

 It's saying it SUPERSEDEDS the Short Sale Contract...Did they mean SALES contract or PURCHASE contract, or am I supposed to GUESS at what SHORT SALE CONTRACT they are speaking of.

They refer to sales contract at one point and then say short sale contract in the second part of the paragraph.  Also, it cannot supersede...it can supplement.  For anything to supersede, then this addendum would TAKE PLACE of the sales contract or short sale contract or whatever contract they are referring to.

 

Then the last sentence clearly states you cannot change the contract or whatever contract they are speaking about without written approval of FHA,VA blah blah which we all know is NEVER going to happen. '

 

@Wendy - I'm not sure they can enforce it because it makes no sense.  This would go down in flames in a court of law.    I understand BOA wants to minimize their loss but now they are just getting plain ridiculous.   THE BOTTOM LINE IS THEY ARE NOT PARTY TO THE PURCHASE CONTRACT!!!  They cannot make addendums when they are not a party IMO. 

Permalink Reply by Premier Loss Mitigation Services on July 2, 2011 at 2:13am
Have you tried asking your negotiator thru equator? Usually the addendums come from the investor and can be different for each BOA loan they are servicing. Ask them to clarify what they want. I negotiate BOA serviced loans alot and have not seen this yet. Usually it is just an addendum to the listing contract and an addendum to the AOS. Both usually say something about settlement has to occur within 60 days of the approval and that the listing contract can be canceled if the homeowner signs a deed in lieu, the agent does not receive a commission. Nancy
Permalink Reply by cassie on July 2, 2011 at 5:13am

It is poorly worded and poorly written. What they are trying to say in their addendum is that it will take the place of the sales and SS contract IF your contract is inconstant with the 12 statements. Continue reading further... "To the extent that any term or condition contained within the short sale contract is contradictory or is inconsistent with this addendum, the parties agree that this addendum shall supersede.

 

If they took the first sentence out of No. 12, it would make much more sense to people.  What they are trying to make sure of is that the previous home owner will not live in the home once the short sale is complete.

Permalink Reply by Smitty on July 2, 2011 at 7:19am

The long and the short of it is the addendum makes no sense.

"supersede any prior agreements, negotiations, understandings, optional contracts, or other matters whether oral or written, with respect to the subject matter hereof."

It's stating it superseded prior agreements....not superseding a contract.  What AGREEEMENTS or UNDERSTANDINGS are they refering too?

"To the extent that any term or condition contained within the Short Sale Contract is contradictory or inconsistent with this Addendum, the Parties agree that this Addendum shall supersede"

What short sale contract?  Do they mean the PURCHASE CONTRACT OR SALES CONTRACT which they refer to in the rest of the addendum?? Where did the short sale contract come in?  Whatever contract that they are refering to, they want the addendum TO TAKE THE PLACE of it, so basically tehre is no Short Sale Contract if any of my items may contradict this addendum which could be anything.

"No alternations, modifications, or waiver of any provision hereof shall be valid unless in writing and signed by Parties, FHA, VA, government agencies, any Investor, and/or mortgage holder, hereto."

Do I even need to explain the thousand things wrong with this sentence?

Permalink Reply by cassie on July 2, 2011 at 7:51am

True. It makes zero sense! I think that they do this on purpsose so that when it is signed they can can come back saying "You singed it!" But then again, there really is no contract if there is no meeting of the minds. This is all around an annoyance. Who wrote this for them?

Permalink Reply by Paul Antonelli on July 3, 2011 at 12:38am
   My old broker refused to sign it one a listing I left at the company where I am still doing the short sales. And when BOA did not get it when they asked for it. They shut the file.
Permalink Reply by Tni LeBlanc (805) 878-9879 on July 3, 2011 at 1:53am

I have refused to sign and had it waived when it had the dual agent verbiage in it.  I think they have removed that now but it is still troublesome and poorly worded in many respects.  On any document I have to sign if I do not think it is accurate I change it.  I haven't had an issue with that so far.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on July 3, 2011 at 3:17am

This is the latest version I received - for a Freddie Mac BAC short sale.  I think they are continuing to work on these "Addenda".  At the end of the day, neither the lender nor the agents are parties to the contract - only the Buyer and Seller can be.

 

As much as I didn't want to sign the version this conversation started with - we never double-end any transaction in our brokerage so that part really doesn't matter to us.  We need to remember, if we (REALTORS) don't close these deals, BAC will assign it to REDC or their subsidiary Red Crown Realty.

Banks aren't supposed to be in the Real Estate Business but they are and their activity is getting bigger.  Close 'em, or lose 'em...........

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