Jan O'Brien

• High number of previous Buyers that were investors and non-owner occupied
• High number of Adjustable Rate Mortgages with increasing mortgage payments
• High number of mortgages with 100% financing and no equity in the property

What is a foreclosed property?

• The true term is REO, “Real Estate Owned”
• Owned by the bank who is the seller 
• No mortgage on the property
• List price is determined by market value for current condition with a 30-90 day sale  

What are some things I should put in my offer?

• Insert the following:  “Seller to complete lender/appraisal required repairs not to exceed $__________.”   
• Write your offer contingent upon a home inspection.
• Buyer can back out based on due diligence clause and receive earnest money back
• Seller's Choice of title
• No assumptions or owner will carry
• The bank may pay for a home warranty and/or the appraisal (request it)
• Seller can close quickly
• Seller will not pay for C,C & R’s unless agreed in offer

What should I submit with my offer?

• Pre-qualify letter or verification of funds
• A copy of the earnest money check – make payable to “title” if escrow unknown
• A prequal letter with lenders bank (if required)

When can I expect a response?

• Generally offers are responded to within 3 – 5 business days, but may take up to 3 weeks. 

How does the bank respond?

• Initial offers need to be presented in writing, preferably on the GLVAR form.  The bank negotiates verbally, so future negotiations will be verbal.
• Multiple offers on the property? Buyers to submit the highest and best offer.   
• Submit highest offer – may be over list price

When is acceptance?

• Once the Buyer signs all documents and provides copies of required paperwork, the property may be put in pending status. 
• Acceptance is only upon Seller signature and generally contingent upon investor approval.

What disclosures and paperwork does the bank provide?

• The Buyer must waive Sellers completion of the Sellers real Property Disclosure statement and other disclosures. 
• Banks do not provide the CC&R’s or certificate of resale packet
• AS IS Purchase Addendum