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.

F.A.Q.   (FOR AUCTION PROPERTIES, PLEASE GO TO VERY BOTTOM OF THIS PAGE)

1. SUBMITTING AN OFFER - The bank will require that all offers be submitted to them in 2 steps: First, on a summary form (Found in Input Summary) which is called the "Offer Worksheet." 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.).Second, on a CAR offer form

2. WHAT FORM SHOULD I USE? After you have submitted the offer details (Found in Input Summary) You should fax or preferable E-mail, your offer on a standard C.A.R. form (RPA-CA) found in WINFORMS. Please check the "addendums" tab to see if you need to download and attach any specific addendums.

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).

3. 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.

4. 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 when you submitted your offer.

5. 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.

6. IT LOOKS LIKE THE SELLER DIDN'T SIGN THE COUNTER OFFER?: You may receive a Seller's Counter Offer with no signatures. These forms are generated by the bank's 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, etc.) is sent to the bank for signatures.

7. 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.**

8. 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.

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. I am waiting too and I will forward the information as soon as it becomes available to me. 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.

9. TIME FRAMES?: 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 upon being alerted that your offer is accepted.

10. 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.

11. 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 to visit the property a 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.

12. 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).

13. 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.

IF REHAB IS IN PROCESS: If the bank is, or will be, rehabilitating the home, their scope of work has already been determined and can not be changed.

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  on our Addendums page.

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.

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.

14. DOES THE BANK OFFER FINANCING? If they do, it will be noted in the MLS.

15. 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.

16. 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.

*** Please do not submit Promissory Notes.
"Cash" offers MUST be accompanied by Proof of Funds. ***

Please feel free to call or email with additional questions or concerns. I look forward to working with you toward the completion of this transaction.

 Click on More Offer Information

*********FOR ANY PROPERTIES MARKED AS "AUCTION" please note:*******
Please be sure the buyer is aware of the auction terms and conditions when submitting their offer. Auction terms are as follows or can be reviewed at www.hudsonandmarshall.com :

• As is where is - Seller will not do repairs to the property
• No inspection contingency - the auction contract does not allow for any inspection period (buyer may complete inspection, at their expense, prior to submitting offer or during 48 hours period after receiving Seller verbal acceptance)
• No financing contingency - auction contract is a cash contract. Buyers may obtain 3rd party conventional financing, however the auction contract has no financing contingency and the lender should be advised that the buyer will be required to close in 30 days and will have earnest money at risk (a preliminary lender approval letter or proof of funds is required with offer)
• 5% or $,2500 minimum certified funds check to be returned with buyer's executed auction contract (On a case by case basis reduced earnest money may be accepted by the Seller based on the property and buyer qualifications); please submit offer with buyer's maximum
• Title insurance - Seller provides insurable title and will pay for the title insurance premium
• Closing costs - Seller pays for title insurance premium and deed preparation only; all lender fees are buyer's responsibility. On Presale offers only, Seller will give consideration towards contributions to buyer closing costs (3% or below should work - anything higher please include a Good Faith Estimate). Any Seller contributions toward closing costs must be applied to buyer closing costs and will not be rebated back to buyer or applied to purchase price.
• Coop commission - Modified to 2% of high bid amount or $500 minimum; coop/buyer agents may not represent themselves or any immediate family members or be party to the purchasing entity.

................PRE-SALE FORM................

Properties placed in the upcoming auction may be sold prior to the auction event with Pre-sale negotiations handled exclusively through Hudson & Marshall. The auction terms and conditions apply to all Pre-sale offers. This Pre-sale Auction Form must be completed and faxed to Hudson & Marshall. (PLEASE DO NOT SEND RETAIL CONTRACT.) Upon receipt of the completed Pre-sale Auction Form, the offer is submitted for Seller consideration. When an approval is obtained from the Seller, Hudson & Marshall will email/fax an auction Purchase and Sale Agreement to the Buyer. The Purchase and Sale Agreement will need to be signed by the Buyer and returned via overnight mail to Hudson & Marshall with the agreed upon earnest money deposit/certified funds.
A Buyer's Premium of 5% percent will be added to the High Bid resulting in the Total Contract Price, or Buyer can enter their Total Offer and 5% will be deducted to calculate the High Bid amount. The buyer acknowledges he/she is purchasing the property "as is/where is" with NO contingency for inspection or financing. The Seller, however, will convey insurable title, with no back taxes or liens. Visit www.hudsonandmarshall.com for more detailed auction terms and conditions.
We appreciate your effort in placing the property under contract. During the Pre-sale period prospective buyers are given a chance to purchase prior to auction and in most instances below market price. If you are unable to negotiate an acceptable offer prior to the Auction, please bring your prospect(s) to the auction.
Commission Structure: Commissions are based on Sale Price (High Bid amount) not Total Contract Price.
Listing and Buyer Agent's commissions are paid as per Broker Letter/auction terms.
Cooperating (Buyer) Broker's Commission: 2% of High Bid.