Bobby Corbin

The Progressive Group

Office (770) 479-8799    Fax (770) 704-0444

www.bobcorbinrealty.com

bcorb@mindspring.com

Purchasing REO Properties

• Offers must be accurately filled out on a GAR 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 3 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 or faxed on a negotiation log, 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 is not provided.
• 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-qualification or pre-approval letter is required before any offer can be submitted.
• Some REO companies require all potential buyers to pre-qual with them or a preferred lender regardless of their pre-approval status. Please look at the FMLS comments for this.
• 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 The Listing Broker.
• A copy of the check must accompany all offers. (NO Exceptions)
• Earnest money becomes nonrefundable 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 Letter

• Many times the REO Company will not provide a termite letter, 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!
• Some banks impose deed restriction that limit the conveyance or encumbering the property for the first 60-90 days of ownership, please ask list agent about each individual property.

Closing attorney

• Seller always chooses Title Co and Closing Attorney. (No exceptions) If unknown write in TBD on the contract.

• 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.

*These instructions are for informational purposes only and should only serve as a guide. Please prepare in advance, as REO homes differ greatly from the sale of a “NON” REO homes. The procedures of each Bank vary and are subject to change without notice. Please call our office if you should have further questions.