IMPORTANT INFORMATION

for POTENTIAL BUYERS thinking about writing an offer on a Foreclosure

PLEASE READ BEFORE WRITING OFFER

All properties are sold AS IS in their present condition. The seller will not make repairs or give any concessions for repairs. Buyers are encouraged to inspect the property prior to writing an offer to purchase. If the buyer conducts inspections during the inspection period and finds unacceptable conditions, the seller will not renegotiate the terms of the contract and will not make repairs. Please inspect or look over property thoroughly BEFORE making an offer. Depending on the type of financing you obtain, the condition of the property may impact your ability to get a loan.  Furthermore, seller will not pay for termite treatment if active termites are found during the inspection period.

Additional tips:

• At the time the offer is submitted, we will need buyer's proof of funds or a pre-approval letter from a lender (Please ask for recommendations).  The loan amount must be indicated in the letter from the lender and a copy of the earnest deposit. Some sellers will not process your offer without it. Once pre-approved the buyer may need to be pre-approved by the sellers lender as well. If the closing is delayed for any reason, the seller will charge a $50 - $150 per diem penalty to the BUYER, not the lender.
• The seller is typically an out-of-town bank and a response to your offer may take several days. Even though you may write a deadline for acceptance, it most likely will not be met, so please be aware of this. The time needed for a response varies greatly depending on which seller we are working with. We will keep you informed via email as much as possible.
• If your offer is verbally accepted, the seller will require that the buyer sign special “as is” addendums. I will fax or e-mail these addenda to you for your review and signature. Please sign immediately and return them to my office. The seller will not accept offers contingent upon the sale or closing of another property. The seller does not do owner-financing or do carry-backs. If your pre approval is contingent upon the sale of another property the offer will be rejected. The sellers agent will be calling the buyers lender to confirm that they are pre approved with no contingencies.
• The seller has seen photos of the property and is aware of the condition. There are no seller’s disclosures, typically. The seller never occupied the property. In most cases we have never met the previous occupants. If I know important information about the property I will let you know.
• The buyers may not make alterations or occupy the property prior to closing. NO EXCEPTIONS
• As soon as the signed contract is received by the listing agent, they will be delivered to the seller for signatures. It may take up to a week or more to receive the signed contract back from the seller. I will do everything we can but keep in mind some companies are handling hundreds of properties at a time in several different states and often the contract has to go to several departments before we get them back. I will get you the signed copies as soon as I receive them.
• Many sellers in their addendums will require buyers to close at the title company of the seller’s choice. REO closings are very different from regular closings we recommend that you use one of our recommended title companies. I am responsible for scheduling with the buyer to close at the title company, I will try to schedule it with the closer as soon as possible due to the high volume of properties the title company handles. I will let the listing agents office know the time and date of closing as soon as it has been scheduled.
• Since these properties were acquired through foreclosure, buyers need to be aware that closing and title problems sometimes do occur and delay closings. If buyers are going to be homeless after the scheduled closing day be sure they have a back up plan.
• After property is under contract, buyer’s agent may be given the combo code to give to the appraiser or home inspector. I will be sure to notify the listing agents office of the date and time for the appraisal and inspection.
• If a buyer is conducting inspections involving water, the asset management company must be scheduled at the same time to de-winterize and then re-winterize the property. Buyer will be responsible for the $150 fee for the services (approximatation). Buyers must get the payment to the listing agents office one day prior to inspections. I am instructed not to turn on the water prior to closing without the asset management company’s permission. Any damage that occurs due to water being turned on with out the asset management company’s permission, will be the responsibility of the buyer’s agent.
• I make sure the buyers have arranged to transfer service into their names. If not there will be an interruption of services.
• The property has been keyed to a master key system. Buyer should re-key the property immediately after procession to ensure safety and security of personal and real property.

If you have any questions about anything I haven’t covered here, please contact me.  Should you choose to buy a foreclosure, be sure to Pick the Berry Best!