REO INSTRUCTIONS FOR SUBMITTING ALL OFFERS
REO is the term for "real estate owned" by the bank, savings and loan, or other lending entity after the foreclosure sale (or "auction") is concluded with no other purchaser buying the real estate.
Unique Features of the REO Market
All REO properties are sold "as is with the seller to make no repairs." Usually the seller has a corporate addendum with "as is" clauses that the buyer must sign as part of the sales contract. Most REO properties have been acquired by the selling corporation (seller) through foreclosure. These properties may have been neglected during the foreclosure process.
The seller doesnotprovide a sellers disclosure statement. Information regarding how the former owner maintained the property other than as evident by the current condition of the property is not available.
The seller has considered the "AS IS" condition when establishing the asking price. Each corporation has a number of days they allow for inspections. The cost of all inspections is the responsibility of the buyer. If as a result of the inspection the buyer feels the property needs more repair than expected and notifies the seller's agent within the number of days allowed for inspections, the buyer may withdraw the offer to purchase (except for VA contract that has no contingencies). The sellers seldom renegotiate the sale price after the inspections.
1. It will be an "as is" transaction and the Buyer must be pre-approved.
2. Original signatures - . Faxes Ok during negotiations, but originals with wet signatures required once offer is accepted.
3. Legal size forms MUST remain legal size.
4. A Copy of the deposit check. << No offer will be submitted without an earnest money deposit having been collected by the Buyers Agent.
Minimum deposit amounts:
Earnest money deposits are required to be 1% of purchase price (or $1000 minimum) if the offer has financing and a minimum of 10% of the purchase price if the offer is cash (or not conditioned upon financing).
If an offer has financing or is contingent upon the buyer obtaining financing, the buyer will have 14 days to deliver proof of unconditional loan commitment to the seller. If an offer is cash, the buyer’s escrow deposit will become non-refundable after the inspection period if no written objection or notice of cancellation was received
Check held by Listing Broker COLDWELL BANKER, RESIDENTIAL BROKERAGE
5. Proof of funds for all cash offers.
6. Verified pre-approval letter (no pre qual. letters accepted) (for financed offers) with ...Lenders phone number for verification.**
7. Contract must state it is an "as is" purchase.
8. Lead based paint (when required) form signed by Buyer. Use a blank form (on VA properties, use the VA LBP form)
Seller always chooses Closing Agent. If Buyer insists on their Title Co. Closing then ALL expenses and charges of Buyer's Title Co are those of the Buyer. Seller will not pay for Buyers Title Co. charges. Period.
TYPICALLY, THE BUYER WILL BE PROVIDED
(FIVE) DAYS, FROM THE DATE OF OFFER ACCEPTANCE, TO COMPLETE ALL INSPECTIONS. ANY INSPECTION ISSUES ARISING AFTER THE FIVE-DAY PERIOD ARE NO LONGER APPLICABLE AND WILLNOT BE CAUSE FOR FURTHER NEGOTIATIONS.
In most instances, you will receive a response within 24hours, however, allow at least 4 to 5 working days for a reply. (Worst case).
Bank addendum forms cannot be changed or altered in any way. Period. You may not cross no cross outswill be accepted.