Lisa Wiseman
Posted Sun Aug 09 07:27AMYes, REOs are easier to purchase than short sales, but in a competitive market like
today's, there are still hoops to jump. Make sure you have an agent who is vigilant
in placing your offer as the seller requests. You will most likely be competing with all cash
buyers, so make it a clean offer.
Below are only a few requirements by just one REO real estate group. Some of these
are standard.
. Please bring your Highest And Best Offer. On many of our properties we receive multiple offers. The Seller rarely extends Multiple Counter Offers and will likely either move forward with the best presented offer or may come back and request "Highest And Best" from all Buyers. Please, No Low-Ball Offers! The Seller has priced these properties aggressively and is not going to give them away.
4. Please write the offer on the current C.A.R. Purchase Agreement. “AS-IS” offers only. If you don’t have the current C.A.R Purchase Agreement, please visit the C.A.R. website at www.car.org and download the current version of WinForms®.
5. For Seller, just put "Owner Of Record".
6. Please allow up to 5 days for response. We will hopefully have a response to you much quicker.
7. Include a copy of the signed Agency Disclosure between the Selling Broker/Agent and Buyer AND a blank copy of the Agency Disclosure signed and dated by the Selling Broker/Agent for the Seller to sign.
8. Include a current Pre-Qualification Letter from a Direct Lender/Major Bank (not a Mortgage Broker!) with their contact information. The Buyer can get their financing through their own Lender if they wish, however, we still need need to have a Pre-Qual included from a Direct Lender. If an All Cash Offer, please include Verification Of Funds.
9. Include a copy of the Buyer’s Earnest Money Deposit Check. Minimum 1%. 3% Earnest Money Deposit is preferred. Also Include Verification Of Funds for the Buyer’s Down Payment & Closing Costs. If you are submitting a Cash Offer, you must provide current documentation of funds. An Equity Line Of Credit will not be acceptable!
10. We do not have any Reports, Disclosures, HOA Docs or Inspections for these properties. The Buyer will have an option to obtain their own inspections. On occasion we have properties that were sold and have fallen through and the previous Buyer provided us with copies of their Inspection Reports. The MLS will reflect those properties that have Inspection Reports available and the Buyer will need to read and approve those Inspection Reports and provide the front page of each Report signed "Read And Approved" by the Buyer and submitted with their offer.
12. Removal of Inspection Contingency within 7-10 days. They may even request 5 days. 14 days for Loan & Appraisal.
16. The Seller will not pay for inspections. Buyer to pay. The Seller will provide a Natural Hazard Disclosure through Disclosure Source
21. If the MLS states NO FHA / VA, that is because of the condition of the property and the Seller is not going to consider a FHA or VA offer due to the likelihood of repairs being required by the Lender
25. The Seller is exempt from most disclosures. Please review the C.A.R. REO Advisory Form for more information. Please do not request additional disclosures to be signed.
26. If the Seller decides to move forward with your offer, you will receive a Counter Offer and Seller Addendum or Seller's Purchase Agreement which the Buyer will need to complete and sign. The Seller will sign after an acceptance. Please note that the terms in the Counter Offer and/or Addendums may supersede terms in the C.A.R. Purchase Agreement. The Buyer and Buyer’s Agent are strongly advised to thoroughly read and understand the Counter Offer and all Addendums before signing! The Buyer must perform as per the terms of the Agreement and Counter Offer/Addendums! Timeframes are firm and failure by the Buyer to perform within these timeframes may result in a per diem penalty, forfeit of their deposit and/or cancellation.
Welcome to my Silicon Valley Blog. All things Silicon Valley here, embracing all communities and many topics....