List for Agents Representing an REO Buyer

The property you are considering is a bank-owned foreclosure also known as an REO. There are several differences between REO transactions and transactions involvingregular residential real estate. These offer instructions are designed to inform you ofwhat to expect throughout the transaction.
* This property is a foreclosure or bank owned property. There is no property disclosure.
* Property is sold AS-IS CONDITION with no warranties. All inspections on financed offers shall be completed within 7 days from execution of contract. No inspection contingency allowed on cash offers, buyer must inspect prior to acceptance of offer.
* Offers must be submitted on a FAR/BAR AS IS contract.
* If there is a financing contingency the interest rate should read prevailing.
* Contracts are not assignable.
* Seller will choose the title company.
* Seller will usually respond between 1-3 business days. Some exceptions may apply.
* Initial deposit should be a minimum of $1,000 for properties under $100,000 and 1% of the purchase price for properties over that amount.
* Please include your office number, fax, cell phone, email, and your buyers phone number on the cover sheet.
* Please include a pre-approval letter for offers that are financed stating that the income and the assets have been verified and LTV amount, or proof of funds for cash offers. On offers with loans over 80% LTV buyer must provide copies of their credit score. Incomplete offers will not be submitted until all items are received.
* If obtaining financing the seller will only approve a 17 day financing contingency.
* Buyer must state in the offer if he intends to occupy the property or if it will be an investment. Seller will not pay over 3% of seller concessions on financed transactions.
* Multiple offers may be received on this property and the seller is under no obligation to negotiate offers in the order they were received.
* Once an offer is accepted verbally, the corrected contracts, all addenda and a copy of the Earnest Money check MUST be in our office within 24 hours. Earnest Money must be made out to and sent directly to the seller's Title Company via a CertifIed Bank Check.
* Buyer/Agent must verify all property information, including size of home, amenities, lot size, schools, etc. Most institutional sellers will not pay a commission to a buyers agent acting as principal.
* There is a penalty for closing delays not caused by the seller. This can vary from $50 to $200 per day.
* The buyers may not make alterations or occupy the property prior to closing. There are no exceptions.
* All utilities will be turned off on the closing date. Buyer must arrange transfer to avoid service interruption.
* Seller does not have keys for mailbox or recreation areas, security system codes, or garage openers. Only the front door key wW be provided. Once the buyer's documents are signed and buyers proceeds are received, you or your buyer may pick up the keys from our office.
Thank you, again, for your interest. Your cooperation is essential and greatly appreciated!We look forward to working with you!

Buying Bank Owned Properties (REO)

Buying Bank Owned Properties (REO)
by Walt HarveyWalt and Aria Harvey are Realtors in Honolulu, Hawaii,So you'd hke to buy a bank owned property?
You've watched the late-night infomercials and you're ready to do the bank "a favor"and take a problem off their hands. Plus, you expect to make "a killing" in the process.Sounds great and it might just happen, but first you should take a look at some factsand get prepared.

REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage companyafter an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorneys fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in"as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth,very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO or "real estate owned" property.

REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner's association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you're successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don't get caught up in a `bidding war' and pay over market value. It's an old myth that foreclosures" are a bargain.

How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like "subject to corporate approval with 5 days"

Property Condition
Banks always want to sell a property in `as is" condition. Most will provide a Section 1pest certification, but not unless you include it in your offer and negotiate the point. Theywill allow you to get all the inspections you want (at your expense), but they may notagree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
Even though you agreed to "as is," always give the bank another opportunity to make repairs or give you a credit after you've completed your inspections. Sometimes they'll re-negotiate to save the transaction instead of putting the property back on the market, but don't take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller's Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements. Most banks will not provide financing on their REOs but it doesn't hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."

Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the
following: * Are there any inspection reports? * What work has the bank agreed to? * Is there a special 'as is' form? * How long does it take the bank to accept an offer? * How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Make your offer easy to accept. Hopefully these tips will manage your expectations. Remember that REQ's sell at pretty close to full market value and are not the deals presented on late night television.
Copyright 2000 WaIt Harvey, real estate broker, CRS, GRI

Vasari Country Club - July Statistics

Vasari Country Club - Available Inventory is Declining.
88 Active
13 Pending

Source: SunshineMLS, Inc.
Sign Up to receive the online Naples FL Real Estate Monthly Newsletter - Click Here

View Vasari Country Club Homes for Sale
Contact Bob Norwood, Vasari Country Club Real Estate Specialist
Bob@NaplesNorwood.com