Submitting an offer for a bank owned property - Posted by Lambert

import · December 13, 2002, 8:31pm

Posted by Lambert Brown (GA) on December 14, 2002 at 16:09:58:

Thx for the response… I’ll give it a try.

import · December 13, 2002, 8:31pm

Posted by Lambert on December 13, 2002 at 21:31:53:

Hi everyone,

I’m trying to get an REO property under contract throught the bank’s agent. I rec’d a fax from the agent today. In summary it states I need nine items when I am submitting an offer.

I have a couple questions regarding the following 2 items from the fax:

I must submit a loan commitment from the buyer’s lender.

I have an investor (who’s paying cash) I will assign the property to. Is this common place to ask for this info before the offer has been accepted? How should I handle this request.

A $1000 earnest money deposit is to be made payable to the listing broker and turned over to the listing broker after the contract has been accepted. The agent wants to see a copy of the earnest money check???

The offer has not been accepted yet… What’s the broker’s point? Need some in addressing this these issues… Should I pay the $1000?

Please advise…

Thx!!

import · December 14, 2002, 9:16am

Re: Submitting an offer for a bank owned property - Posted by Nate(DC)

Posted by Nate(DC) on December 14, 2002 at 10:16:12:

Congrats on your first deal!

(OK, that was mildly sardonic…)

#1 - Yes, it is common. It is almost universal. I would suggest you have this investor write a letter that you are approved for financing through him, and attach a copy of his bank statement to the letter so they know he has the money to do it.

Now, you will have another problem, which is, how are you going to “assign” this to him? The REO contracts are all non-assignable, and they typically make you use their title company so you would not be able to double close. There are ways around this…I bet if you search the site, you will come up with some.

#2: If you want the deal, yes, you should pay it. Write a check for $1000 to the listing broker, xerox it, and send in a copy with your offer. That’s standard. Then, when your offer is accepted, you’d forward them the actual check.

Good luck,
NT

import · December 14, 2002, 3:12pm

Re: Submitting an offer for a bank owned property - Posted by Lambert Brown

Posted by Lambert Brown on December 14, 2002 at 16:12:39:

Thx Nate. I really appreciate your input. I’ll give a shot.

import · December 14, 2002, 10:35am

Re: Submitting an offer for a bank owned property - Posted by Mark-Chi

Posted by Mark-Chi on December 14, 2002 at 11:35:57:

Nate,
I agree with most of what you said. However, one small point…“all” REO contracts aren’t necessarily unassignable. I am under contract with an REO now and am negotiating 2 others. All offers are on standard Realtor contracts that do not prohibit assigning. Also, I added “and/or assignee” after my signature and no one questioned it. So go ahead and try it. Ya never know!

Mark

import · December 15, 2002, 8:44pm

Re: Submitting an offer for a bank owned property - Posted by Nate(DC)

Posted by Nate(DC) on December 15, 2002 at 21:44:14:

Hey, if that works for you, all the better…the standard Realtor contract here in DC/MD is, by default, not assignable, and most of the REOs I see also have their own special addendum, which essentially says that “despite anything to the contrary anywhere, this contract is not assignable”.

NT