BUYERS CAN NOW SELECT HIS/HER OWN TITLE COMPANY ON BANK OWNED PURCHASES IN ARIZONA.

As you may know all banks use their own addenda for REO (real estate owned) sales. For many years now Fannie Mae has been using basically the same addendum which stated that the buyer MUST use the seller's title agent.

The addendum has been DRAMATICALLY CHANGED in that it now states: "The closing shall be held at a place so designated and approved by the Purchaser". This is an absolute turnaround from previous versions wherein it stated that the purchaser MUST use seller's title agent! The buyer's right to now select the escrow company can be found in Section 2B, page 1, line 4. When representing a buyer, do not allow the REO agent to dictate the title company any longer on Fannie, as this would not be fiduciary. If the agent challenges you, simply educate them on where the Addendum gives the buyer this right.

The net effect of this new addendum is that the buyer can now make his/her own selection as to title agent and will then be better protected against any prior title defects.

It abouth time. We are very excited to know that our buyers who buy bank owned properties are now put back in the driver's seat on these REO transactions!