Real Estate Owned properties (REO’s) can be tremendous values. But they are not without risk. Prior to writing an offer on a bank-0wned property, make sure you balance out the risks and rewards.
Contract Elements: Banks often have very specific instructions that must be followed for an offer to even be considered. They may prefer a specific title and escrow company. They often request that you are pre-approved with their loan officer. And it’s likely that you will receive verbal acceptance far in advance of their written acceptance.
Counter Offers: You will receive one, even if the bank accepts your price. These documents then supersede your initial offer. Understand that these are written by attorneys for the bank and can be very lengthy. You’d be well advised to have this reviewed by your own attorney.
Disclosures: The bank agents and principals in the transaction have never lived in the property and won’t provide disclosures about the properties condition. Many of the documents you received will simply state ‘exempt’. (more…)
Getting an offer on your property doesn’t mean that it is sold. Not all buyers make it to the finish line for various reasons – property condition, failure to get final loan approval, job transfer mid-contract. So while we may expect a 30-day escrow that may not turn out to be the case.
The terms of your loan with the bank on your property require monthly payments. Even though you have communicated to the bank that you are selling the house, that does not change your obligation to pay, and to pay timely. Here are a few good reasons to keep things on track: (more…)
Karen Crowson
Alain Pinel Realtors
Phone: 925.784.6208
Cell: 925.784.6208
Fax: 925.245.1897
Email: karen@karencrowsonhomes.com
License #: California DRE#01732313
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