Realtor Spot

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Some common REO information that may help you, our Realtor friends:

WRITING THE OFFER:

Line 2: Please check the box “as identified in section 9c”. We do not deal with the Bank Owner direct. Everything is managed through Asset Management companies and the Bank’s do not sign the paperwork. This becomes an issue with your Buyer’s financing.

Line 91: Escrow/Title Company – please enter “TBD”. The Seller chooses the title company.

Line 304: Please waive SPDS and CLUE. Seller has no knowledge and will not provide. 

EARNEST CHECKS:  We will not receive the title company until after the Seller executes the documents, please have your Buyer write their earnest check to “Title” – literally.  We do need a copy of this to submit your Buyer’s offer.

COUNTER OFFERS FROM THE SELLER:

Highest & Best:  If we receive more than one offer, chances are high the Seller will request Highest & Best to give everyone an opportunity to change their offer if they want.  Remember the phrase is Highest & BEST – you should consider increasing your Buyer’s Earnest Deposit or making it Non-Refundable from the get-go, shortening or waiving the inspection period and deleting or decreasing concessions.  It is not always about increasing your sales price.

Mortgage Contingency:  Typically your Buyer’s Earnest Money is safe during the life of the contract. Many of the Seller’s we work with give a specific time frame for the mortgage contingency ; 15-25 days. This means that after this timeframe, if your Buyer’s loan is not FULLY approved, they can NOT get their earnest money back due to their inability to obtain financing. 

AS-IS: Your Buyer signed an AS-IS addendum.  AS-IS means the Seller will not do repairs.  You can ask, but do not be surprised if the Seller says NO. 

Appraisal Required Repairs:  The Seller may or may NOT agree to these. Again, don’t be surprised if they say NO and the contract is cancelled. In many cases the Seller is happier to put the home back on the market than deal with repairs and appraisers.

BINSR: You can send one, but 9 times out of 10 they will not sign it.  Even if they agree to some or all repairs, they typically won’t sign the BINSR.

COE Extensions: If you are going to ask, make sure it’s a one time request.  They will typically grant an extension, especially if it’s in the same month.  However, if you have to ask twice, they will charge your Buyer a daily per diem.