BANK SALES & REOs
REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction.
Bank owned foreclosed properties, are opportunities for great prices, but they have requirements for offers and concessions as well.
In a bank transaction, they run the show… for the most part the bank determines what will be included or not included. These properties are sold “as is”, the inspection periods are short ~ often 5 to 7 days, the termite inspection, survey/staking and cleaning are only occasionally included (stronger offers will not ask for them and/or will ask for a credit at closing for these services). Additionally, if the utilities are turned off you as the Buyer will have to turn them on if desired for the inspections (electric/water). For condos, delinquent maintenance fees generally fall to the buyer, so make sure you take the amount due into consideration.
Though it seems like a lot of things are not done by the “seller” they are minimal in terms of cost as compared with paying for a “regular” listing and having those items taken care of by the Sellers. Bank sales often have multiple offers and the "cleanest" offers (fewest contingencies) and most complete package of the items below moves your offer to the “head of the pack” for consideration.
If you decide to write an offer on this type of listing, the following will be REQUIRED for your offer to be considered.
* Pre-qualification or Pre-Approval letter from a Lender: I can give you the names of lenders my clients have used and been very pleased with as well as their contact information. Of note, if you offer on a Countrywide bank sale, you will need to be pre-qualified with Countrywide, though you do not have to use them for your loan, their pre-qualification letter will be required.
* Earnest Money, bank sale offers will often require a Certified Check or Money Order for your earnest money deposit, though some will accept wired funds or a personal check made out to Escrow
* Verification of Cash Funds: for cash offers and financed offers, a copy of bank statements or letter from your financial institution on letterhead verifying your cash contribution to the transaction will be required to be submitted with your offer.
If you have any questions or would like additional information, please contact me directly.