Our goals are to streamline the offer process
and get you into escrow as soon as possible.Step One
Please submit your offer. It's as easy as 1-2-3-4.
.
Step One:
Read ThisStep Two:
Required AddendumsStep Three:
Submit Offer SummaryStep Four:
Fax Signed OfferWinforms Loan Calculator Contact Us Available Listings
The SCV Home Team
Your REO Specialists
Keller Williams VIP PropertiesPhone: 661-287-9164
FAX: 661-291-1463
E-mail: REO@SCVhometeam.com
Step One: Read This
Answers to Frequently Asked Questions
This page was prepared to be an informative guide when writing an offer on a "Bank Owned" or Corporate property (Otherwise known as an REO). It is not intended to be a binding agreement of any sort. The information contained herein is designed to create an informed consumer and to lessen the stress of the home buying process for the Purchaser, Buyer's Agent, and Listing Agent. Please review these items with your buyer prior to offer submission.
1. WHAT FORMS SHOULD I USE?
Forms properly filled out, initialled and signed in all the right spots will facilitate your offer to purchase being presented and accepted. Experienced Realtors should not have a problem, but on occasion new or inexperienced agents will have to work a little harder and pay more attention to detail. It is really as easy as A-B-C.
A) First, fill out a summary form (found in STEP 2) which is called the "Offer Worksheet." Click the 'Submit' button. This is aimed at simplifying the process for the Asset Manager, who will more often than not, have a large number of properties under management and often in multiple states with vastly different real estate contracts. This worksheet will have the basics only (Price, Terms, Concessions, Closing dates, etc.).
B) Then click on WINFORMS for C.A.R. forms and fill out the appropriate forms including the RPA-CA, making sure to use current forms and writing out the full specifics of your offer. Again, make sure that all areas requiring initials and signatures are properly filled out.
C) Finally, click the 'ADDENDUMS' tab and check for any additional forms needed for the property you wish to make an offer on. Local Realtor associations, the Broker, and the bank may each require forms to be submitted along with the STEP 2 Offer Worksheet and the CAR offer forms. Download, print, and fill out these forms, again all properly initialled and signed.
2.. SUBMITTING AN OFFER
The bank has a two part process with offers they review.
The first is your submission of the "Offer Worksheet" (found in STEP 2) where they review the basics of the offer.
The second part comes when you FAX the completed offer (found at WINFORMS) along with any addendums (STEP 3).
Please note: INCOMPLETE OFFERS WILL NOT BE REVIEWED.
3. WILL THE SELLER PAY ANY CLOSING COSTS?
Some banks are open to paying closing costs (or giving a credit for closing costs) If you are going to ask for SPC, we suggest that you put this request amount in item 2.D of PAGE 1 of your written offer (on your Winform).
4. HOW SOON WILL THE BANK RESPOND?
We have no control over the bank's decision-making process. On rare occasion they will respond in the first 48 hours. However, more than likely they will respond in 2 to 3 days. Please be patient and do not call the listing agent to check on progress. The listing agent will notify you immediately when they get a response. Some banks do not look at offers until the property has been on the market for at least 5 days. Please be considerate... we are all working towards the common goal of closing on the subject property. IF YOU HAVE NOT HEARD FROM US IT IS BECAUSE WE HAVE NO UPDATE TO GIVE YOU, NOT BECAUSE WE ARE IGNORING YOU.
5. WILL I GET A RESPONSE OVER THE WEEKEND?
Unfortunately No. Any offer submitted over the weekend will be presented the following business day. Any offer submitted through this system will be date-stamped. The bank will know exactly when you submitted your offer.
6. HOW DOES THE BANK COUNTER?
Since all offers are submitted to the seller on the worksheet (Or online via the "Offer Summary") your counter offer may come back in the worksheet format (Simple details of the what the bank is willing to accept). More than likely, your counter will be delivered to you orally or by email with simple details.
7. WHY DOES IT LOOK LIKE THE SELLER DIDN'T SIGN THE COUNTER OFFER?
You may receive a Sellers Counter Offer with no signatures. These forms are generated by the banks Asset Manager or the outsource company (and often come to the Listing agent as an email attachment). Once an offer is accepted the entire package (which may include the Offer as well as Counters, Addendums, copy of the check, et.al.) is sent to the bank for signatures.
8. ARE THESE VERBAL AGREEMENTS?
Once you are informed that your offer is accepted, it is (acceptance may be accompanied by the afore mentioned worksheet). REO departments and Asset Managers give the ok and then go to their managers for signatures. (It is highly unlikely to have an Asset Manager un-accept an accepted offer. Yes, you could be the first, but it is highly unlikely.) We realize it is an unusual business practice to agree to offers orally, but the banks have their own way of doing business and we appreciate your understanding.
******* IF YOU ARE NOTIFIED THAT YOU HAVE AN ACCEPTED OFFER,
PLEASE FORWARD THE OFFER TO YOUR LENDER SO THEY MAY
BEGIN THE LOAN PROCESS. *******
9. WHO CHOOSES THE ESCROW AND TITLE COMPANY?
The reality is, when buying a bank owned home there are "give and takes". One of the items that your buyer will need to be flexible about is that the bank will, more than likely, choose the title and escrow companies. (The Listing Agent has no say in the matter either - I have my favorite Escrow companies and Escrow officers too, so we are all in the same boat.) This is due to the fact that they have significant amounts of title work done during the Foreclosure process.
10. WHERE DO I FORWARD THE DEPOSIT CHECK?
ESCROW COMPANY CONTACT INFORMATION COMES WITH THE SIGNED DOCUMENTS FROM THE SELLER. While you may be anxious to send in the buyer's deposit check to escrow, the Listing Agent WILL NOT HAVE this information prior to receiving the documents back from the bank. We will notify you when we are informed who to use. We are waiting too and will forward the information as soon as it becomes available! Continued multiple and/or daily queries slow down the process for everyone involved (and for other agents and purchasers you have never met in other states). Please be considerate... we are all working towards the common goal of closing on the subject property.
11. WHAT TIME FRAMES SHOULD WE EXPECT?
Generally you will have 30 (to 45) days from mutual acceptance to close the transaction. Often the proposed closing date on the original offer is unrealistic due to the elongated negotiation and acceptance process with the REO departments. The Asset Manager knows that you can't close in a week and a half (unless your offer is cash). They are not here to work against you. Asset Managers know that appraisals, inspections and the loan process take time. They will assume that you have taken the time prior to making an offer to become pre-approved for the loan and that there will be no trivial delays beyond the 30 (to 45) day closing period. Read the Bank Addendum carefully. There is often a per diem late fee assessed for tardy closings. The bank will not suffer delays due to the Purchaser's Lender not performing in a timely manner. Begin your inspections and loan process upon being alerted that your offer is accepted.
12. CAN THE BUYER DO INSPECTIONS?
Just like any other sale, your buyer has the right to fully inspect the property within the frame of paragraph 14.B of the purchase agreement. Seller will not order or pay for any inspections.
13. HOW DO WE SET UP INSPECTIONS?
It is absolutely essential that you give us 3 BUSINESS DAYS NOTICE PRIOR to scheduling your inspection. Some utilities (such as electricity) will likely be on prior to your making an offer, others will not (such as gas or propane). The Listing Agent has NO control over the work schedules of the local utility companies. As such the Listing Agent will not be responsible for re-inspections and/or associated fees, it is not a bad idea for you to visit the property ONE DAY PRIOR to the inspection to check if systems are on and working. Your buyer will be responsible for DE-winterizing a property for inspection and then RE-winterizing the property after inspection.
14. CAN THE BUYER CANCEL IF THEY FIND SOMETHING WRONG?
The buyer has the right to cancel the contract and receive their deposit back if they do so within their contractual time frame (Unless specifically noted).
15. WILL THE BANK PAY FOR ANY REPAIRS?
Please notify your buyer this home is being sold "AS-IS." As a rule, ONLY issues which are LENDER REQUIRED will be addressed and you must request these at the time you make your offer. REO Asset Managers are VERY familiar with what constitutes a Lender Required repair and will not approve cosmetic, dated, or wear and tear related issues. YOU MUST put in a "Not to Exceed" amount in your initial offer if you want the bank to pay for any repairs. Please do not try to renegotiate after the home inspection as this will, more than likely, end up causing the bank to cancel your transaction. Addressing non-Lender required issues can be accomplished by raising the price and having the Seller credit back for the repair. Generally, these repairs will not be authorized to be completed prior to closing.
16. WHAT IF REHAB IS IN PROCESS?
If the bank is, or will be, rehabilitating the home, their scope of work has already been determined and cannot be changed.
17. WILL THE BANK PAY FOR A PEST CONTROL (Termite) INSPECTION?
More than likely, we will already have a termite report for the property. You can obtain this report through our "Fax on Demand" service found in step 3.
18. WHAT IF THERE ARE SECTION 1 ITEMS ON THE REPORT?
Your buyer's lender may have a stipulation that Section 1 items must be corrected prior to close of escrow. Please be aware that your buyer will, more than likely, be responsible for correcting those not the bank. If you want the bank to pay for these costs, THEN YOU MUST ASK THE BANK FOR A "NOT TO EXCEED" AMOUNT IN YOUR OFFER.
19. WILL THE BANK PAY FOR RETROFITTING?
More than likely not, so prepare your buyer (and your offer) to handle this on your own during escrow.
20. DOES THE BANK OFFER FINANCING?
If they do, it will be noted in the MLS.
21. WHAT ABOUT CONTINGENCY PERIODS?
Your buyer must adhere strictly to the contingency periods or they risk having their contract canceled and losing their deposit. This is a business transaction and banks don't like excuses or delayed decision making. Some banks institute a "per diem" charge for delayed closings.
22. WILL THE BANK ACCEPT CONTINGENT SALES?
It is highly unlikely that any bank would accept a contingent sale. If the bank accepts your offer then finds out that the buyer really does need to sell a home in order to purchase (and you haven't disclosed that) the sale will be immediately cancelled.
23. WHAT ELSE SHOULD I KNOW?
a) Please do not submit Promissory Notes. They will not be accepted.
b) Cash offers MUST be accompanied by Proof of Funds. No exceptions.
Please feel free to call or email with additional questions or concerns. We look forward to working with you toward the completion of this transaction.
Sincerely,
Ray Kutylo and the entire SCV Home Team
