This page is updated has new REO's become available. See bottom of page for documents &/or instructions for REO's by address. Please check back for updates. Last update was 5 May 2008.
Realtor Instructions for REO Offers
Pre-qualification or pre-approval letter from buyer's lender on lender's letterhead required before any offer can be submitted. Letter should state, at a minimum, the dollar amount buyer is pre-qualified for, type of loan, down payment amount, and that buyer’s credit report has been reviewed.
If offer is cash, proof of funds is required. A letter from 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.
An earnest money deposit of a minimum of $1000 is required for most offers. In some cases, the minimum earnest money may be up to 3% of the purchase price. See bottom of page for required minimum Earnest Money Deposit by address. All earnest money deposit checks should be made out to; HOME REALTY Escrow Account. Check must accompany offer. Do not bring cash. In some cases, the earnest money deposit must be in the form of a cashier’s check. If a cashier’s check is required, it will be noted a bottom of page under REO's address.
Provide a self addressed stamped envelope when you bring the purchase offer. (addressed to you or the purchaser, your choice) If your purchaser’s offer is not accepted, their check will be voided and placed in the mail within 3 to 5 business days after all counter offers are rejected. Earnest money deposit checks for accepted offers will be deposited into the HOME REALTY Escrow Account immediately upon offer acceptance. Should the contract fail to close, and the if purchaser is entitled to receive their earnest money deposit back, a check written on the HOME REALTY Escrow Account will be placed in the mail within 3 to 5 business days upon HOME REALTY receiving release signed by both seller and buyer. You are responsible for writing the release.
Offers contingent upon the sale of purchaser’s property will not be submitted or considered. Do not bring offers where the purchaser must sell before buying on the theory that if you leave the selling contingency out of the offer, they will simply have their loan rejected and all will be fine. If a loan is rejected because your purchaser did not sale current property, the REO company will seek your purchaser’s earnest money deposit.
Seller’s purchase addendum is required. Addendums, lead paint disclosure, and any other disclosures or disclaimers are available for download at the bottom of these instructions. Addendums will not be faxed unless they are not available for download on Internet. Look under private remarks on MLS for forms not available for download.
Errors and Omissions Insurance is required. Any agent making an offer should be prepared to submit a copy of their agency's E&O Insurance if requested. Offers without proof of E&O Insurance will not be considered.
Once all negotiations are complete, prepare a new sales contract and addendums that is legible and reflect the final negotiated terms. Seller will not execute counter offer forms. Seller often requires final documents within 2 business days. In order to meet this deadline, final original documents must be delivered to HOME REALTY's Buena Vista office by the following business day no later than 4 PM.
All instructions are as per REO company and bank listing agreements and instructions. Incomplete or incorrect offers will not be submitted. Most offers are submitted over the Internet. A rejection copy will not be provided.
Residential Contract of Purchase
Offer should be typed in ZipForm. If hand written, it must be legible. Neither I or the Asset Manger will spent time trying to decipher your handwriting. The offer will be rejected.
Asset Mangers do not like to see blanks. Fill out all areas completely.
Sellers name and address as shown in MLS. Purchaser's name should be the same has in which they want to take title. If they are a LLC or Corporation, use that has the purchaser’s name. Name changes are considered assignments, and will not be allowed. Include purchaser’s address.
1. Real Property: Accurately copy legal description as shown in MLS. Most REO attorneys are out of town or even out of state. They rely on an accurate legal description to begin their work.
2. Personal Property: Always type in “none.” Personal property can not be conveyed with a REO sale. If there is personal property left on the property, it will not be removed by the REO company. However, the former owner could come back and claim it.
3. Purchase Price: Include type of financing and loan amount &/or % of purchase price. If cash, write “cash sale” in 3(d).
If asking seller to pay any closing costs, write “Seller agrees to pay up to $_______________ toward borrower’s costs. This may include Discount points, Buydown points, Prepaids, FHA Commitment Fee, Survey, Tax Service Fee, and Closing Costs” in 3(d).
If asking seller to contribute to AmeriDream write “Seller agrees to contribute 3% of the purchase price ($ ), plus $500 (total $_______) to the AmeriDream Downpayment Gift Program” in 3(d).
Be forewarned, although some Asset Mangers have agreed to pay closing costs and AmeriDream in the past, most will not. The more the purchaser asks for, the more likely their offer will be rejected.
4. Deposit: Write in “HOME REALTY Escrow Account”. Mark by check. Offers with a cash earnest money deposit will not be accepted.
5. Financing: Check with your purchaser’s lender for time needed for loan commitment. Type in "N/A" if a cash offer.
8: Settlement; Possession: Write in “Office of ‘buyer’s attorney’s name’, Attorney.” Do not write ‘designated attorney’s office’, unless you want the seller to ‘designate an attorney’. Then you and your buyer will be driving to the seller’s attorney’s office for closing, never anywhere nearby, often out of state.
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 $100 if the closing is delayed at no fault of the seller. 30 days from contract date is almost always acceptable. If you start asking for more than 45 days from the date of the contract, it will be countered or possibly rejected outright. If the offer is countered, and a few days past, remember to change the loan commitment and closing dates if you counter the counter offer.
9. Expenses; Pro-rations; Rollback Taxes: Real estate taxes are prorated has always. Any past due taxes and penalties are taken care of by the seller. (still the purchaser’s attorney’s job to see that this has been done) Write “n/a” in line 9(b).
11. Risk of Loss: Do not wait until the last minute to conduct your final walk through with the purchaser. It there is a problem, it takes time to correct it.
12. Wood Infestation Inspection and Report: Many times the REO company will not pay for a pest inspection. You can still ask as a part of the offer, they will counter back if they will not. In the line for additional structures, write “none.” If it has a garage or other large building that the appraiser will give a value to, you can write that in. Do not write in storage building or any other small structures of little or no value. If you leave the contract with the seller paying up to $1000 for treatment, the seller will deduct that amount from their net, and lower the total value of your purchaser’s offer.
If the purchaser decides to provide their own pest inspection, the REO company often considers it a part of the Home Purchaser’s Inspection. It should be conducted within 10 calendar days of offer acceptance.
13.Title: Title will be by Special Warranty Deed. It is possible that the Mortgage Insurance Company may elect to take possession of the property. This is a very rare occurrence. If it does happen, the contract will become null and void, and the earnest money will be returned to the purchaser. Like any other property, REO’s do occasionally have title issues. And like always, the purchaser’s attorney, not the seller, researches the title.
14. Equipment Condition and Inspection: Neither the seller nor HOME REALTY has any information as to the actual condition of the property. Purchasers are encouraged and welcome to make any and all inspections needed to evaluate the property. Seller will not make any repairs. See below for Home Purchaser’s Inspection instructions. We do not know how old the roof is, did the basement ever leak, or how much the electric bill runs. A REO is a foreclosure. The current owner (bank or mortgage company) has never seen it. They have seen my report and several pictures, plus the appraiser’s report and pictures. Neither of us are home inspectors. We probably did miss something. Do not submit a list of repairs and upgrades the property needs with a low offer. Asset Mangers hate that just has much as owner sellers do. The offer will be rejected.
15. Well and Septic: Many times the REO company will not pay for a septic inspection or water test. You can still ask as a part of the offer, they will counter back if they will not. If your purchaser is willing to pay for the water test and septic inspection, type it in Paragraph 29. If the purchaser decides to provide their own water test &/or septic inspection, the REO company often considers it a part of the Home Purchaser’s Inspection. It should be conducted within 10 calendar days of offer acceptance.
16. Seller’s And Purchaser’s Option: Seller will not make any repairs. I strongly recommend you write “zero” here.
17: Home Purchaser’s Inspection: Most REO’s will allow a home inspection. Time permitting, it is strongly recommended that the purchaser conduct this inspection prior to making the offer, then wave it on the purchase contract. If a home inspection is included, do not ask for more than 10 calendars days total to conduct it and get back to the seller in writing if the results are unsatisfactory. If a property has been winterized, the purchaser is responsible for the cost of rewinterizing it after an inspection.
20. Virginia Condominium Act: Do not leave blank. Mark “is” or “is not.” If property is subject to Virginia Condominium Act, highly recommend you request the resale certificate prior to making an offer, and state in Paragraph 29 the resale certificate is satisfactory. When available, resale certificate will be available for download at bottom of these instructions. Resale certificates available for download will not be faxed.
21. Property Owner’s Association Disclosure: Do not leave blank. Mark “is” or “is not.” If property is subject to Virginia Property Owners’ Act, highly recommend you request the association disclosure packet prior to making an offer, and state it Paragraph 29 the association disclosure packet is satisfactory. When available, the association disclosure packet will be available for download at bottom of these instructions. Association disclosure packets available for download will not be faxed.
22. Lead-Based Paint Inspection: Lead based paint disclosures for homes built prior to 1978 are required. Sometimes the REO company provides their version, sometimes I provide Virginia Association of REALTORS lead based paint disclosure form for them. In either case, be sure you and the purchaser initial and sign in all required areas. Offers with incomplete or incorrect forms will not be submitted. When available, Lead Based Paint Disclosure will be available for download at the bottom of these instructions. Lead Based Paint Disclosures available by download will not be faxed.
24. Notice of Disclaimer or Disclosure Pursuant to Virginia Residential Property Disclosure Act: Foreclosed properties are exempt from the Virginia Residential Property Disclosure Act. Mark disclosure “is not” attached.
29. Other Terms: Type in “See Attached Seller’s Addendum of Purchase Contract”. Type in any other terms, such as suggested in Paragraphs 12, 15, 20 and 21 above, or any other items that the purchaser feels a need to address.
30. Acceptance: Allow at least 5 business days for a response. Often I have a reply sooner, sometimes it takes longer. If there are multipliable offers, your purchasers may be asked to sign a Multipliable Offer Addendum. These tell all purchasers that there are completing offers, and usually ask for the purchaser’s highest and best offer. The seller may still reject any and all offers.
Receipt of deposit per paragraph 4 above is hereby acknowledged. I will sign for receipt of deposit if properly received. I will not provide any other form of receipt. If your purchaser wants one, you must provide it.
Listing Company’s Name and Address
HOME REALTY
149 West 22nd Street
Buena Vista, VA 24416
Office Phone: 540-261-3302 Fax: 540-261-2430
Agent Name: Dennis Hawes
Agent E-mail Address: dennis@rockbridge.net
Cellular phone # 540-461-5263
Selling Company’s Name and Address:
Fill out completely has shown above for Listing Company.
Seller’s Addendum to Purchase Contract and Other Forms
Each REO Company or Bank has it own Addendum to Purchase Contract. While they are all different for each company, they all have several common themes that I will address below. Since they are all different, I can not provide paragraph per paragraph instructions as I do for the purchase contract. Most you will be able to complete on your computer after downloading. Some you can not, and you need to print and handwrite the information. Make sure it is legible. Neither I not the Asset manger will spend time trying to read your handwriting. The offer will be rejected.
Addendum Applies: If any language in the purchase contract and the addendum are in conflict, the addendum language always prevails.
As Is: All Sellers’ Addendums will state, often taking several paragraphs to do so, that the property is being sold as is. The seller will not make repairs before or after the closing.
Possession: Purchaser can not move in prior to closing. 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.
Per Diem Penalty: Seller will require purchaser to pay a penalty of $100 per day if the closing is delayed due to no fault of the sellers. This includes the lender not having the loan ready, and the attorney not being prepared. Often this is already included in the addendum. Sometimes a blank space is provided to write it in. In the space provided, write in $100. Anything less, and the offer will be rejected, countered, or another offer accepted.
Contract Can Not Be Assigned: This includes changing the purchaser’s name to their LLC. It will not be allowed. Make sure the offer is made in the name the purchasers wishes to take title in.
Title: Title will be by Special Warranty Deed. This is the highest and best form of title that can be offered for a foreclosed property. It is possible that the Mortgage Insurance Company may elect to take possession of the property. This is a very rare occurrence. If it does happen, the contract will become null and void, and the earnest money will be returned to the purchaser. Like any other property, REO’s do occasionally have title issues. The addendum will often state that if the seller can not provide title, the contract will become null and void, with the earnest money deposit returned to the purchaser. Like always, the purchaser’s attorney, not the seller, researches the title.
Lender Information: Many Sellers’ Addendums ask for the name of the lender, loan officer or contact person, address, phone and fax numbers, email address. Be sure all this information is filled out completely. Asset Mangers will not take the time from their busy schedule to call you or me and ask how to contact the lender. The offer will be rejected.
Attorney Information: Many Sellers’ Addendums ask for the name of the attorney, (or closing company) contact person, address, phone and fax numbers, email address. Be sure all this information is filled out completely. Asset Mangers will not take the time from their busy schedule to call you or me and ask how to contact the attorney. The offer will be rejected.
Purchaser Information: Some Sellers’ Addendums ask for the name of the purchaser's), address, phone and fax numbers, email address. Be sure all this information is filled out completely. (write “n/a” if no fax number or email address) This information is forwarded to the REO company’s closer. Asset Mangers will not take the time from their busy schedule to call you or me and ask how to contact the purchaser's). The offer will be rejected.
RE-KEY: Many REO proprieties have been rekeyed to a master key system. It is highly recommended that the purchaser rekey the property immediately after closing. If I had the property rekeyed, and it was not to a master key system, I will advise you of that, and the purchaser can decide if they want to rekey or not.
What To Do If This Is Too Much Work to Ask For a Property in This Price Range
You’re right. It is a lot of work, new forms to read, hoops to jump through. If you are too busy, download and fill out the buyer referral agreement below. Send it to me, and for five minutes work, I will pay a 25% of the selling side referral fee to your real estate agency for any pre-qualified buyers you send for my REO or HUD Owned Properties that close on the property.
NO Real Estate Commission Paid for Agent Buyers
In some cases, REO's will not pay a Buyer's Side Commission if a licensed real estate agent is the buyer, a close relation to the buyer, a member of a LLC buyer, or a stockholder in a Corporation buyer. Buyer Agents need to ask prior to making an offer if there will be a Buyer's Side Commission if they are in any way associated with the Buyer other than acting as a Buyer Agent.
Sellers’ Addendums and Other Required Forms
Click on the form links under the REO property address below for any required forms for that property. If the address of the property you are seeking is not below, check private remarks in MLS. Any form available below for download will not be faxed.
1804 Pine Avenue, Buena Vista, VA 24416
Earnest Money Deposit required is a minimum of $1,000.
This is a VA REO. VA Purchase Contract and Addendums required. Go to http://www.ocwencustomers.com/va_ff.cfm to find the required forms. VA Identifier # 8000493711
No contingencies. VA will not consider an offer with any contingences including financing.
805 West 29th Street Buena Vista, VA 24416 Under Contract by Auction, But waiting to see if Seller will accept high bid.
3% of Purchase Price required for Earnest Money Deposit.
Seller generates purchase addendum after offer is accepted. We have 5 days after they send addendum by email to return to seller.
Lead Based Paint Disclosure Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint.
10783 Narrow Passage (Route 43) Eagle Rock, VA 24085 Under Contract, Pre-Auction Sale
NOW UNDER AUCTION TERMS
Auction Wednesday, 23 April 2008, 7 PM
Courtyard by Marriot-Roanoke Airport
3301 Ordway Drive
Roanoke, VA 24017
This is an AS IS Sale. Sale will not be contingence upon any inspections.
Seller will pay
for title insurance.
All properties
are sold free and clear of back taxes and liens.
2% of the High Bid to the Cooperating Broker
In order to qualify for the selling broker commission, a broker must do the following:
ü Review the "Terms & Conditions of Sale" (in the brochure) with each client you are representing.
ü Professionally assist your client by providing property information and previewing the property.
ü Attend the auction and complete the cooperating broker information on the back of your prospect’s bidder card at the registration table before the auction starts.
ü Sign your client’s Bid and Deposit Receipt at the auction.
Terms of Sale
Successful bidders will be required to put 5% of the total purchase price down or $2,500, which ever is greater. The down payment must include $2,500 in the form of cash or a cashier’s check made out to the bidder’s name. The remaining balance may be in the form of a business or personal check. The earnest money deposit is non-refundable for all approved sales. For properties selling for $10,000 or less, the purchaser shall be required to pay for the property in full on sale day.
A buyer's premium fee of 5% will be added to the final bid amount on each property sold at the auction. The high bid amount plus the buyer's premium equals the total purchase price.
Click Here for more About Auctions!
Property subject to pre-sale. Offers must be submitted by 15 April 2008. Have all pre-sale offers to HOME REALTY by 14 April 2008 in order to insure time to submit and time for seller review prior to deadline.
The following will apply if the property fails to sell at auction and becomes a "regular" listing again.
3% of Purchase Price required for Earnest Money Deposit.
Make sure lender is aware that this is a double wide, date of manufacture is 14 June 1976.
Seller generates purchase addendum after offer is accepted. We have 5 days after they send addendum by email to return to seller.
Lead Based Paint Disclosure Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint.
75 Union Run, Lexington, VA 24450
3% of Purchase Price required for Earnest Money Deposit.
Seller generates purchase addendum after offer is accepted. We have 5 days after they send addendum by email to return to seller.
Lead Based Paint Disclosure Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint.
298 Chessie Lane, Buena Vista, VA 24416 (Rockbridge County) UNDER CONTRACT
Earnest Money Deposit required is a minimum of $1,000.
Seller name should read "CitiFinancial Inc c/o Olympus Asset Management".
Addendum to Contract for Sale includes lead based paint disclosure. Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint.
2233 Forest Avenue, Buena Vista, VA 24416
If the selling agent (buyer's agent) is the Purchaser of the Property, the Seller will not pay the Selling Agent's (buyer's) portion of the Commission.
Earnest Money Deposit required is a minimum of $1,000. Larger Earnest Money Deposit highly recommended.
Addendum to Contract For Sale includes lead based paint disclosure. Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint. Paragraph 11, fill in 6% in first blank and $2,500 in second blank.
Homebuyer's Guide To Common Environmental Hazards
Disclosure and Hold Harmless Agreement
Mold Addendum to Contract For Sale Seller has no knowledge of mold. Seller has not had property checked for mold.
396 1st Street, Buchanan, VA 24066
Earnest Money Deposit required is a minimum of $1,000, 10% Earnest Money Deposit for all cash offers. Under "Other Terms", Paragraph 29 of VAR Contract of Purchase, the following wording must be included;
See attached Real Estate Purchase Addendum. Pursuant to Paragraph 28 of the Real Estate Purchase Addendum this document is subject to all terms and conditions set forth in the Real Estate Purchase Addendum.
Download and complete following documents and attach to all offers.
Multiple Offers Notification Only required if there are Multiple Offers. Listing agent will complete and fax to you if needed.
Once all negotiations are complete, prepare a new sales contract and Fannie Mae Purchase Addendum that is legible and reflects the final negotiated terms. Fannie Mae will not execute counter offer forms. Final original documents must be delivered to HOME REALTY's Buena Vista office by the following business day no later than 4 PM.
3966 Borden Grant Trail, Fairfield, VA 24435
"This property is approved for ExpressPath™ Financing. Have Buyer call 866-366-2736 to pre-qualify."
Earnest Money Deposit required is a minimum of $1,000, 10% Earnest Money Deposit for all cash offers. Under "Other Terms", Paragraph 29 of VAR Contract of Purchase, the following wording must be included;
See attached Real Estate Purchase Addendum. Pursuant to Paragraph 28 of the Real Estate Purchase Addendum this document is subject to all terms and conditions set forth in the Real Estate Purchase Addendum.
Download and complete following documents and attach to all offers.
Multiple Offers Notification Only required if there are Multiple Offers. Listing agent will complete and fax to you if needed.
Once all negotiations are complete, prepare a new sales contract and Fannie Mae Purchase Addendum that is legible and reflects the final negotiated terms. Fannie Mae will not execute counter offer forms. Final original documents must be delivered to HOME REALTY's Buena Vista office by the following business day no later than 4 PM.
534 Factory Street, Buena Vista, VA 24416
3% of Purchase Price required for Earnest Money Deposit.
Seller generates purchase addendum after offer is accepted. We have 5 days after they send addendum by email to return to seller.
Lead Based Paint Disclosure Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint.
715 Long Hollow Road, Buena Vista, VA 24416 (Rockbridge County)
3% of Purchase Price or $1000, which ever is greater, required for Earnest Money Deposit.
Proof of Funds for
cash offers OR Pre-approval letter from a Direct Endorsement Lender (mortgage
broker/banker is
unacceptable) must also be obtained from buyer and attached with offer.
WAIVER & RELEASE REGARDING PROPERTY CONDITION, LEAD PAINT DISCLOSURE, and UTILITY TRANSFER AGREEMENT ADDENDUM TO CONTRACT Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint. Seller has no knowledge of Actual Property Condition. Inspections by Buyer or Qualified Buyer Representative Highly Encouraged Prior to Submitting Offer.
344 Lloyd Tolley Road, Natural Bridge Station, VA 24579 SOLD
3% of Purchase Price required for Earnest Money Deposit.
Seller generates purchase addendum after offer is accepted. We have 5 days after they send addendum by email to return to seller.
Lead Based Paint Disclosure Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint.
6010 North Lee Highway, Fairfield, VA 24435 SOLD
If the selling agent (buyer's agent) is the Purchaser of
the Property, the Seller will not pay the Selling Agent's (buyer's) portion of
the Commission.
Seller reserves the right to accept the offer of their choice regardless of the
order in which they are received, counter offered or presented if a multiple
offer scenario arises.
Please call Buena Vista HOME REALTY office at 540-261-3302 and ask for fax copy of Seller's Addendum, Lead Based Paint Disclosure, Mold Disclosure and Offer Worksheet to be completed with any offer.
2023 Oak Avenue, Buena Vista, VA 24416 SOLD
Earnest Money Deposit required is a minimum of $1,000. Seller does NOT mediate or arbitrate. Delete Paragraph 27, Non-Binding Mediation, from the contract by drawing a large X across it and having buyer's) initial beside the deleted paragraph.
Download and complete following documents and attach to all offers.
Lead Paint Disclosure Seller has no knowledge of lead based paint. Seller has not had property checked for lead based paint.
2144 Old Hollow Road Buchanan, VA 24066 SOLD
Earnest Money Deposit required is a minimum of $1,000. Under "Other Terms", Paragraph 29 of VAR Contract of Purchase, the following wording must be included;
See attached Real Estate Purchase Addendum. Pursuant to Paragraph 28 of the Real Estate Purchase Addendum this document is subject to all terms and conditions set forth in the Real Estate Purchase Addendum.
Download and complete following documents and attach to all offers.
Multiple Offers Notification Only required if there are Multiple Offers. Listing agent will complete and fax to you if needed.
Once all negotiations are complete, prepare a new sales contract and Fannie Mae Purchase Addendum that is legible and reflects the final negotiated terms. Fannie Mae will not execute counter offer forms. Final original documents must be delivered to HOME REALTY's Buena Vista office by the following business day no later than 4 PM.