HOW
TO BUY AN REO PROPERTY
These
are the steps that MUST
be followed in order to get your offer approved. Failure to follow
these steps will result in your offer not being considered. Click here
for a printable version of this information.
All
financed offers
must be
accompanied by a pre-approval letter, generally from a specific
lender, if a specific lender is required your agent will be able to
give you the lenders information so that you can contact them and get
your pre-approval.
All cash offers must
be
accompanied by proof of funds, the easiest way to do this is with a
bank statement with the account numbers blacked out or a letter from
the bank on their letter head showing the current balance in the your
accounts.
REO companies always
chooses who
they will use for Title & Escrow. Often, the Escrow will be
handled out of town with a courtsey signing held at a local company
of the sellers choice. Your agent will be able to tell you who the
seller has chosen for title & escrow.
REO
companies will
not sell a
property to a company, corporations, llcs, etc.
REO
companies will
not sell a
property to a and/or assigns buyer.
REO
companies will
not take a
contingent offer, not even if it is only contingent on a pending
sale.
REO
companies will
not do an
owner contract.
Earnest
money is
required for
all P&S on REO properties. The general rule for the amount of
earnest money is 1% of the purchase price but your agent will be able
to tell you the specific requirements for each property.
REO
companies have
their own
addendums they have to have signed, sometimes you get these ahead of
time the majority of time you don't get them until the bank approves
your offer. Do not make any changes to these addendums, if you make
changes they will reject your offer.
REO
companies sell their homes AS
IS.
Inspections are for your peace of mind so that you know what they
are getting yourself into.
<>Counter offers are
not done on
official forms, in fact, the majority of the time they are done
through email between the buyers agent and the sellers agent.
REO companies don't sign P&S
contracts until there is mutual acceptance through the email/online
process and all required bank addendums have been signed by the
buyer. Then, they sign the entire contract package at one time.
Once mutual acceptance happens,
we have 24 hours to upload or email a complete contract package to
the REO company for their signatures and it usually takes a couple of
days to get the signed package back from them.
