916REO.com Serving Sacramento, Placer, Yolo, and El Dorado County Bank Owned Homes REO

It is essential that the buyer be aware of all aspects of purchasing a bank-owned property before making this major decision. Please make your buyers aware of the procedures in purchasing a bank-owned property.

Purchasing REO Properties

Offers must be accurately filled out on a CAR form and legible.

Offers will not be considered without these items: a copy of E.M check, Pre-qual letter or proof of funds.

Allow at least 2 to 5 business days for a response. Please keep in mind our clients are corporate sellers and often are managing several hundred properties at a time. Prepare your buyer upfront, we will call you when we have a response.

If multiple offers, purchasers may be asked to sign a Multiple Offer Addendum and will be asked for their highest and best offer.

Most offers are submitted over the Internet the contract is rarely sent to seller during negotiations.

All Negotiations are verbal until we have reached a binding agreement. The contracts will be finalized and sent to the seller for signatures.

The seller will “NOT” consider a contract if it is contingent upon the sale of another home.

Offers will “NOT” be submitted until ALL required forms are received.

The seller or 3rd party did not occupy the subject property. Therefore, a PROPERTY DISCLOSURE shall state EXEMPT on it.

BE AWARE, while this is a foreclosure, the seller has had an appraisal and 2 BPO’s completed prior to establishing the price. Offers based on “$.50 on the dollar” or half the listing price will be rejected. Please take this into consideration when you are using your valuable time as well as ours to prepare offers.

Pre-qualification

Pre-approval letter is required before any finance offer submitted.

Call Gene Oxley (916) 714-3742. for a pre-approval. you are welcome to apply online at www.GoMoneyMan.com. Buyer is under no obligation to use this lender. SELLER WILL NOT ACCEPT OFFERS WITHOUT THIS PRE-APPROVAL. In addition, if the buyer chooses to use their own lender, then buyer is to submit a loan approval letter with their offer and pre-approval as instructed above.

If offer is cash, proof of funds is required. A letter from the buyers bank stating funds equal to or greater than purchase price are available to buyer, or a bank statement in buyer’s name are both acceptable.

Earnest Money

An earnest money deposit of a minimum of $1000 is required for most offers. E.M. check should be made payable to _(blank)___ (blank)___ Title Co.
A copy of the check must accompany all offers. (NO Exceptions)
Earnest money becomes non-refundable after inspection period has expired.

Signatures

We do not need originals for the negotiations; typically negotiations are done by fax or online.

Seller does not sign anything until Buyer has signed.

Assignment language is “NOT” permitted under any circumstances.

If buyer is a LLC or Corporation, then you must also include the individual’s name.

Purchaser(s) name which wants to take title should be the same on the contact, addendums, pre-qual letter/proof of funds, and E.M. check.

Addendums

Each Bank has their own Addendum to Purchase Contract in some cases this is required with the initial offer and with other’s they are not required until we have a mutually agreed contract. The listing agent will tell you.

If any language in the purchase contract and the addendum are in conflict, the addendum language always prevails.

All Sellers’ Addendums will state that the property is being sold “AS IS”.

Inspection Period

Inspections MUST be completed on or before 10 calendar days from the Verbal Acknowledgement date.

Termite Inspection

Many times the REO Company will not provide a termite inspection, you may still ask for this as part of the offer in Special Stipulations.

If the purchaser decides to provide their own pest inspection, the REO company often considers it a part of the Home Purchaser’s Inspection process. It should be conducted within 10 calendar days of the Verbal Acknowledgement date.

Possession

Purchaser can not make any repairs prior to closing.

Purchaser can not “move just a few things in” prior to closing. Please don’t ask!

Closing Title Company

Seller always chooses Title Co. (No exceptions) If unknown write in TBD on the contract. On Deposit Check Write in _(blank)___ (blank)___ Title Co.

For closing date, be sure to provide enough time for the lender to complete the loan.

The seller will charge a per diem penalty of $50-$100 if the closing is delayed at no fault of the seller.

After the Seller Responds

The seller will typically respond verbally, by fax, or email. They may email additional “as-is” addenda and we will send these to you as soon as we receive them. Once buyer and seller agree to terms, typically we will then need all originals delivered to our office.

Once you deliver the complete original contract and supporting documentation to our office the Seller will not negotiate any other offers. It may take up to 2 weeks to receive the signed contract back from the Seller so please be patient.
Our Signs and Lockboxes: We will remove all signs and lockboxes typically within 7 days of the closing date. Please do not remove them yourself! If we do not receive them after closing, we will expect you, the agent, to reimburse us for the cost of these items. Keys may not be removed from the MLS box until recording and funding are complete.