REO Offer Instruction Page

If you do not understand the concept of "As Is". Do a web search or see below.
Buyer's, see the Buyers page 1st  ( www.columbusohioreo.com/buyerinfo.htm  )

All offers for Bank Owned properties, real estate foreclosures must include:

1) Local contract forms (unless VA property) Click here for VA instructions: http://www.columbusohioreo.com/vaforms.htm
2) Signed Sellers Addendum (usually required with the initial offer) Available at http://www.columbusohioreo.com Our Listings Tab/Page. 
3) Original signatures  - . Faxes Ok during negotiations, but originals with wet signatures required once offer is accepted.
4) Legal size forms MUST remain legal size. VA only.
5) A Copy of the deposit check. <<  No offer will be submitted without an earnest money deposit having been collected by the Buyers Agent.
      Minimum deposit amounts (some Banks require more):
     1% of sales price or $500 min. on properties under $50,000 - certified or cashiers check only upon acceptance of the offer
     $1,000 on properties over $50,000          check held by Sellers Title Company - certified or cashiers check only upon acceptance of the offer
6) Proof of funds for all cash offers.
7) Verified pre-approval letter (no pre qual. letters accepted) (for financed offers) with  ...Lenders phone number for verification.**
        Please supply a pre-approval letter without contingencies. The only exceptions shall be final underwriting, appraisal and title.
        The letter must specifically state that the lender has verified all income, assets and ratios. Additionally,
        the lender must state the loan amount and LTV%.
8) Contract must state it is an "as is" purchase. And must state that the Sellers addendum is part of the contract.
9) Lead based paint (when required) form signed by Buyer. Use a blank form (on VA properties, use the VA LBP form only)
10) A Fair Housing form is required with Buyers signature and initials.

Seller does not sign anything until Buyer has.
Seller always chooses Closing Agent. If Buyer insists on their Title Co. Closing then ALL expenses and charges of Buyer's Title Co are those of the Buyer. Seller will not pay for Buyers Title Co. charges. Period.
 
Allow at least 4 to 5 working days for a reply. Worst case.

Bank addendum forms cannot be changed or altered in any way. Period.
Cannot cross anything out, write anything in etc

. And completed

Sellers require that the Ernest money deposits be held by Sellers Title Company.

Attention REALTORS !!  Please, print and review the MLS Agent to Agent report on each property.
Sign it and send with the offer.

NOTE: THE PURPOSE OF THE BUYER'S INSPECTION(S) OR INVESTIGATION(S) IS TO DETERMINE IF HE OR SHE WISHES TO PROCEED WITH THE PURCHASE OF THIS PROPERTY. IT IS NOT FOR THE PURPOSE OF CREATING A LIST OF REPAIRS FOR THE SELLER. IT IS THE SELLER'S POSITION THAT THE NEGOTIATED PRICE REFLECTS THE PRESENT "AS IS" CONDITION OF THE PROPERTY. SELLER WILL NOT PAY FOR REPAIRS OF ANY KIND UNLESS OTHERWISE AGREED TO IN WRITING.

Additional Instructions for Bank of America (COUNTRYWIDE) HOME LOANS properties

All Buyers must get a pre approval letter from Kathi Holtz of Bank of America Home Loans at 614-781-3434 ext.# 230, unless its a cash offer.
--and submit the BOA pre qualification letter with their offer.--
After receiving a BOA Pre Qual, Buyers may apply and Finance with other lenders as desired.

Real Estate Purchase Addendum

Bank of America’s Real Estate Purchase Addendum must be completed by agent and executed by Buyer(s). This Addendum along with the original purchase offer constitutes the binding contract to purchase the specified property.  The Addendum is the culmination of all negotiations and may not be altered or changed.  Any subsequent changes may cause Seller to nullify the prior negotiated terms. 

It is the agent’s responsibility to make sure all sections of the addendum are properly signed and initialed. Failure to do so will add unnecessary time to the negotiation process. The Asset Manager will not execute an incomplete addendum. This includes Buyer's name, property address, date of contract.

Offer Worksheet

The listing agent representing Bank of America uses this form, as a non-binding communication vehicle for all offers  presented to Bank of America.  This form is not a contract nor a binding agreement.  Consequently, all offers will require Bank of America’s Real Estate Purchase Addendum (Part I and II) and mold release form to establish a mutually binding contract between Bank of America and the Buyer.
 Actual amounts should be used  whenever possible.  If an actual amount is not available an estimate is acceptable as long as it is identified as such.
After the contract has been reviewed, the Bank of America Asset Manager will accept the offer or submit a counter  offer using the Offer Worksheet Form, with terms acceptable to Bank of America.  This process will continue until all parties have agreed to the terms of the transaction.

The Offer Worksheet and Real Estate Purchase Addendum have been developed in order to expedite the offer and counter offer process. 
The offer process requires 4 steps: 

(1)     submission of original offer, and Acknowledgement from Buyer(s) that they have reviewed the Real Estate Purchase Addendum (Part II, General Terms) and mold release form prior to submitting an offer to Countrywide;  PLEASE CONTACT AGENT FOR SELLER ADDENDUM PRIOR TO WRITING OFFER.

(2)     negotiation of terms via the Offer Worksheet;

(3)     agreed  terms inserted into Bank of America’s Real Estate Purchase Addendum BY THE AGENT for signature by Buyer; and

(4)     Original Contract, Real Estate Purchase Addendum, mold release form, agency, LBP with agreed upon terms transmitted to Countrywide Asset Manager for signature and processing.  It is the agent’s responsibility to make sure all sections of the addendum are properly signed and initialed prior to sending  for signature. Failure to do so will add unnecessary time to the negotiation process. The Asset Manager will not execute an incomplete addendum.

Please note that utility activation forms may be submitted with the contract package, however inspections are not to be completed until after the contract has been signed by the seller. Please note that when the form is approved, the utilities are to be activated in the buyer’s name and the buyer will be responsible for any expenses associated with activating or turning off the utilities. Utilities are also to be turned back off after the inspection is complete. Click here for the Turn on Utility request form.

Buyer Home Inspections:

BOA’s properties are sold “as is”. For a comprehensive definition of “as is”, the BOA Addendum spells out the terms of the sale with regards to property conditions.
Property inspections are encouraged to determine property conditions. However, there is no guarantee utilities can be turned on for the inspection. That is dependent upon the nature and expense of the repairs needed to activate utilities. This is at the sole discretion of the seller. It is not at the discretion of the buyer or the lender. There are alternative methods for testing mechanical and plumbing systems which should be explored by the buyer if utilities cannot be activated. The buyer should contact a licensed contractor to explore alternative testing possibilities, if necessary.

Call for the Sellers addendum forms 614-547-8337

Fannie Mae addendum sample

Additional instructions for VA Offers  (See VA Instructions Page !!!  - http://www.columbusohioreo.com/vaforms.htm  for line by line instructions on completing the VA required forms.) Call or email a request for forms to be faxed or emailed to you

1.) Please Fax original signature offers to 614-474-1660 . Once offer is accepted - mail the originals to Listing Agent, USPS.
2.) Please Include VA addendum (on website)
3.) Please Include the Seller’s Disclosure (Call Bob for a Copy).
4.) Please include VA Radon and Mold Disclosure (on website).
5.) Please make sure the commission is correct at 6%  (3% each side)
6.) Please make sure the buyer signs Page 2 (Conditions of Sale) and initials at Line 9C.
7.) We need a copy of the earnest money check which is held by the listing Broker.
8.) Mortgage approval/Pre-approval letters or proof of funds
9.) No addendums/contingencies are going to be accepted so please don’t send them.
10.) VENDEE financed Offers on Term side only (#8). All other offers on CASH side (#7) 

Also, please include the VA LBP disclosure form (on website) if it applies to your property.

Never send a CBR contract for a VA property. The offer will be returned to the Buyer's Agent, not submitted to Seller.

Do NOT send until the offer has met these parameters!

Not all Lenders will finance “As Is” properties, see link below for some who do.
Most REO properties will not pass an FHA or a VA and most conventional appraisals. I strongly recommend using a Lender that does rehab or construction loans.

As Is Rehab and construction loan Lenders:

Click here for a list of Rehab Lenders  www.columbusohioreo.com/buyerinfo.html

Learn How to Finance Rehab & Investment Properties

"As is", is just a term people use to indicate they will not be making any repairs to a home prior to the closing of a sale.
Explanation of 'as is' and more foreclosure information is available on my Buyer's Page

Unique Features of the REO Market

"AS IS"

All REO properties are sold "as is with the seller to make no repairs." Usually the seller has a corporate addendum with "as is" clauses that the buyer must sign as part of the sales contract. Most REO properties have been acquired by the selling corporation (seller) through foreclosure. These properties may have been neglected during the foreclosure process.

The seller does not provide a sellers disclosure statement. Information regarding how the former owner maintained the property other than as evident by the current condition of the property is not available.

The seller has considered the "AS IS" condition when establishing the asking price. Each corporation has a number of days they allow for inspections (except for VA contract that has no contingencies). The cost of all inspections is the responsibility of the buyer. If as a result of the inspection the buyer feels the property needs more repair than expected and notifies the seller's agent within the number of days allowed for inspections, the buyer may withdraw the offer to purchase (except for VA contract that has no contingencies). The sellers seldom renegotiate the sale price after the inspections.

All REO properties are sold "as is with the seller to make no repairs." Usually the seller has a corporate addendum with "as is" clauses that the buyer must sign as part of the sales contract. Most REO properties have been acquired by the selling corporation (seller) through foreclosure. These properties may have been neglected during the foreclosure process.

The seller does not provide a sellers disclosure statement. Information regarding how the former owner maintained the property other than as evident by the current condition of the property is not available.

" ............. then Buyer, as Buyer’s sole option, may terminate the Agreement and neither party shall have any further obligations under the Agreement. As a condition to Buyer’s right to terminate the Agreement prior to the Inspection Period Deadline, Buyer agrees to submit to Seller any and all written reports resulting from any inspections conducted or ordered by Buyer within three (3) calendar days following the close of the Inspection Period Deadline. Upon receipt of such reports, Seller will immediately refund the Deposit to Buyer."

Any repairs to the Property identified by Buyer or which may be required by Buyer’s Lender (collectively, “Repairs”) are the sole responsibility of Buyer. Seller shall have no obligation to make any Repairs to the Property whatsoever. Buyer agrees not to enter the Property prior to the Closing Date for the purpose of making any Repairs or any other alterations without Seller’s express prior written consent.

Links about the Ohio Foreclosure and  Ohio Redemption Law:

http://www.foreclosurelaw.org/Ohio_Foreclosure_Law.htm
 
http://www.stopforeclosure.com/Ohio_Foreclosure_Law.htm
 
http://www.savehome.us/OHIO.html
 
http://www.uslegalforms.com/lawdigest/legaldefinitions.php/redemption.htm

Foreclosure Lawyer
Find foreclosure lawyers or law firms specializing in
foreclosure law. Cases handled including commerical real estate,
condemnation, lanlord/tenant, zoning, and property tax.

Financing

It is very important to be properly pre-qualified for financing prior to making offers on REO Listings. Prior to acceptance of a contract, the sellers always require verification of the buyer's ability to finance the purchase.

FHA, VA, and many of the special financing programs available to homeowners require building inspections to evaluate the condition of the property. Seldom do REO properties meet the requirements of these programs. Construction Loans, Cash or conventional Rehab loans are required. Sometimes called 'Hard Money' loans.

None of the REO sellers that list with Coldwell Banker King Thompson are willing to hold a second or do seller take backs. And there is never a rent to own option.

All pre-qualifying financing letters for "as is" purchases must state that the lender is prepared to make the loan based on an "as is" appraisal.

THE Pritchard TEAM
Coldwell Banker King Thompson
Fax 614-474-1660

email: team@columbusohioreo.com  

Equal Housing Opportunity .. 
 

It is illegal to discriminate against any person because of race, color, religion, sex, handicap, familial status, or national origin.”

REALTOR® -- A registered collective trademark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.  Each local board of REALTORS® is responsible for enforcing the Code of Ethics.  Inquiries regarding the Code of Ethics should be directed to the board in which a REALTOR® holds membership.
All information presented is subject to errors, omissions and revisions and is not warranted.
"This is not intended to solicit property currently listed with another REALTOR."  
Independently Owned and Operated By NRT Incorporated

VA  Forms:

Call Bob and He will fax you the legal size forms and instructions on filling it out. 614-547-8337

OR

Send me an email and I will send you the forms and instructions for filling it out. bob@bobpritchard.org

OR

Download the forms at: http://www.columbusohioreo.com/VA_ContractForms.pdf

 Kathi Holtz  Kathi.Holtz@bankofamerica.Com  
Bank of America Home Loans 
(614)781-3434 Ext. 230
FAX-(614) 409-3966
TOLL FREE (888)824-0667 Ext. 230
Call Kathi about the FHA 203k program.