NOTICE TO REO AGENTS AND BUYERS
Points for submitting an offer on a bank owned property


* Bank owned properties are not the traditional sale and can be tricky to navigate through the process. Here’s how to draft an offer the bank-owner will accept.

* 3% deposit with a check made out to Title Company

* Financing blocks on page one of the CAR purchase agreement should be filled out completely. In other words, if the purchase loan is FHA, mark the FHA box and fill out the interest rate, points etc.

* If you are asking for seller credit put the request on page 1 of the CAR contract under other financing terms.

* A 30 to 45 day close of escrow is acceptable.

* Try not to ask the seller to pay for….. The seller will usually pay for Natural Hazards Disclosure, smoke detector compliance and hot water heater strapping.
Many of our bank owners will not pay any closing cost, including seller share of escrow and title which is traditional in the area.

* Physical Inspection time is 7 to 10 days.

* Do not ask seller to provide a home warranty.

* No personal property is included in the sale. If there is personal property at the house, it probably will remain, but, seller can not warrant its condition.

* A copy of the deposit check is required as part of the purchase agreement package.

* A buyer’s loan pre-qualification letter is required. A pre-approval letter is better.

* The pre-qualification letter can not be from an on line lender.

* Buyers, agents and lenders full names, address, phone number, fax number and email must be provided to the bank owner.

* Currently, asset managers handling bank owned properties have a huge work load. Buyers and their agents should expect to wait a week for response to the offer.

* When your offer is accepted the bank will generate a Bank Owned As-Is Addendum. This is a supplement to the CAR purchase agreement and should be read carefully. The addendum supersedes the CAR purchase agreement and the asset manger and escrow officer will follow the addendums terms if there is a conflict. This is a non negotiable item. DO NOT mark the Addendum. Changes on the addendum will void the contract.

GOOD LUCK.