Offer Considerations for Corporate Owned Properties
The sellers of these properties request that agents do not show these houses unless the buyer has been pre-approved for a loan or has provided documentation of sufficient cash to close on the purchase of an REO.
The sellers will not provide financing.
If your buyer is planning to pay cash, he may provide a bank statement or a letter from a bank officer (on bank letterhead) or a stock broker (on brokerage letterhead) stating that s/he has the funds necessary to close. This can be faxed to 910.791.4036 and it will be required before an offer can be submitted to the seller. There are no exceptions to this rule.
If your buyer is planning on getting a loan, s/he must be pre-approved in order to make an offer on a property. Preapproval (not prequalification) can be faxed to (866) 420-4177. There are no exceptions to this rule.
Most of these properties will not qualify for a VA (Veterans Administration) or FHA loan or any type of 100% loan. Be sure that your buyer tells his/her lender that the property s/he is interested in is a foreclosure property.
It is very very difficult to get a loan on a manufactured home (double-wide); a high credit score and at least 5% down-payment is usually required.
At this time, we know of no lenders who will make a mortgage on a single-wide mobile home or on any mortgage that is less than $30,000.
Please note that title is delivered by Special Warranty Deed, not General Warranty Deed. When property is acquired through a legal proceeding instead of a sales contract and agreement, then a Special Warranty Deed is used.
If your buyer decides to purchase a VA foreclosure, s/he is required to pay all seller’s closing fees; this is usually between $400 and $800. Please factor that into your offer.
Earnest Money Deposits are negotiable, but most banks will require that EMD be a minimum of $1000. When presenting your offer, a check copy is fine, but if the offer is accepted and Live Oak Real Estate will be holding the earnest money in trust, the monies must be in the form of certified funds.
Many, but not all, of these sellers require that their properties will be closed by the seller’s attorney.
Sellers will not accept an offer contingent on the sale of another property.
NC OTP(do not forget that NCREC now requires your license # on here as well)
Pre-approval or proof of funds
Awareness form (note agent initials in 2 places and signs at bottom)
Multiple offer form (if necessary)
Buyer closing information form
Seller addenda(specific addenda found through Properties section to the left)
EMD or copy
Once you’ve submitted an offer….
Because the bank-sellers are large corporations, with more than one person’s OK required to sell a property, it frequently takes more than 3 days to get a response on your offer. At times, it takes 3 weeks or more. Please remember that Live Oak Real Estate can do nothing about this.
If your buyer’s offer has been rejected, you will NOT receive a rejection letter.
If there are multiple offers on the same property, it is important that you and your buyer read and sign the ‘Multiple Offer, Highest and Best’ form. Your buyer MUST make his/her best offer in this situation as s/he likely will not have another chance to increase his/her offer.
PLEASE do your best to discourage your buyer from calling or coming to Live Oak Real Estate. We are not his/her agent and we want you to get paid for being the selling agent and holding your buyer’s hand as necessary!