A Pre-Approval Letter from a US Bank Lender, a US Bank Statement or Proof of Funds Letter from your US Bank if paying cash is required before viewing any properties.
All offers must be submitted in writing.
All offers must be submitted with an Ernest Money Deposit (EMD), minimum $1000 or up to 10%.
No offer will be submitted until 1 thru 3 is received and no homes will be shown until a copy of the PROOF OF FUNDS OR A PRE-APPROVAL LETTER has been provided to the Buyer’s Agent.
The response time for an offer depends on the Seller. We may get lucky and get an answer in one day. All offers are subject to be accepted, countered, or rejected.
Short sale properties can take several months before the bank will accept, counter or rejects an offer.
Sellers are looking for the best offer; in multiple bidding situations the best offer will always win.
Some counter offers are verbal and will require an immediate response. Delaying a response, will cause the Seller to accept another offer who’s Buyer may have responded faster.
Bank Owned properties will only allow a buyer 24 hours to sign and submit bank addendums, and another 24 hours for Listing Broker to receive offer package with Contract to Purchase, Bank Addendums and EMD check. An offer may be rejected if Signed Documents and EMD check are not submitted by deadline.
When the contracts are signed by both parties, the Seller or the Buyer depending on the agreement will pay for and order the City Inspection.
Bank foreclosures are sold AS IS. Banks may not provide the city inspection report prior to making an offer. Therefore, the Buyer should be prepared to accept the property in as is condition and consider that they may have to order their own city inspection and be required to sign a Waiver/ACR/Temporary Certificate of Occupancy with that municipality accepting all city required repairs prior to closing. Some cities will require a Cash Bond and a Fee before they issue a Waiver/ACR/Temporary Certificate of Occupancy for closing.
After the offer is accepted, it is strongly recommended that the Buyer go to each department of the Municipality and satisfy him/herself that there are no pending ordinance charges or liens. The Buyer should order a final water reading as soon as offer is accepted by the Seller/Bank and deliver it to the closing Title Company prior to closing.
When the contract is signed by both parties, the Seller will order Title work so that clear Title is taken by the Buyer at closing. We will not close on any home only offering a Quit Claim Deed (QCD).
The Buyer may lose the Ernest Money Deposit (EMD) if he refuses to close the transaction thru no fault of the seller.
The Buyer may pay a penalty if purchasing a bank owned property and does not close on the target date due to the fault of the Buyer. The penalty is usually a dollar amount per diem and a rescheduling fee.
Some Listing Brokers and Auction websites require a REO FEE for bank owned properties.
If the property is bank owned and the Seller cannot close due to negative proceeds or bad title; then, at Sellers option an offer May be Null and Void and the EMD will be returned to the Buyer at no recourse to the Seller.
Some bank addendums may require that the Buyer pay for TRANSFER TAXES and OWNER’S TITLE POLICY.
HUD owned properties require that the Buyer pay for all closing and recording fees including but not limited to the Owners and Lenders Title Policy.
Banks have their own investors, and non profit organizations, and at any time may decide to pull a property from the market and sell it in a bulk sale to their investors or donate it to a nonprofit organization.
The Buyer shall not move into the property after closing until all final city inspections are done and a certificate of occupancy is issued to the new owner.
Repair work on the property shall not start until both Buyer and Seller have closed with a title company and closing documents and moneys is disbursed.
The Buyer may be required to turn on utilities and de-winterize property at their own expense so that a city inspection can be completed and an appraisal for their lender is done properly as required by municipality and or Buyer Lender.
Some Bank Owned Transactions are closed in escrow until the Seller’s sign there part of the transaction. A Transaction is not closed and the Buyer does not own the home until the Seller has signed the documents and moneys are disbursed to all parties involved. Seller may decline signing due to negative proceeds and or a bad title and return EMD and all other money’s brought to closing by Buyer at no recourse to Seller.
HUD, BANK AND CORPORATE OWNED HOMES CAN TAKE 15-45 DAYS TO CLOSE. SHORT SALE HOMES CAN TAKE 3 TO 12 MONTHS OR MORE TO CLOSE; EITHER WAY, THE BUYER IS RESPONSIBLE TO CLOSE WHEN THERE IS CLEAR TITLE, A SELLER SIGNED DEED, A COMPLETED CITY INSPECTION, AND A SHORT SALE RELEASE LETTER. IF TARGET DATE IS NOT MET DUE TO AN UNCLEAR TITLE, AN UNSIGNED DEED BY THE SELLER, OR A SHORT SALE RELEASE LETTER, THEN AN EXTENSION WILL BE REQUIRED TO PROCEED WITH TRANSACTION.
THE BUYER UNDERSTANDS THAT THE BROKER/AGENT IS NOT ACTING AS AN ATTORNEY, TAX ADVISOR, SURVEYOR, STRUCTUAL ENGINEER, OR PROPERTY INSPECTOR, AND THAT THE BUYER SHOULD CONTACT A PROFESSIONAL ON THESE MATTERS.
