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Buying and closing process when it is an REO (Bank Owned
Property)
email Claudine or call (760) 799 5308
Writing
and presenting the offer
The offer needs to
be presented with a proof of funds
- If
“all cash deal” a bank or financial institution statement showing your ability
to pay for the purchase is mandatory
- If
financing: needs an approval by the bank who owns the property whether
financing with that bank or not.
The
transaction process
- Once
the offer is accepted by the seller (the bank), we receive a contract
established by the seller stating all the terms of the sale that the buyer
needs to sign. The Seller will then countersign the contract when returned to
them. The date of “acceptance of the offer” (beginning of escrow) will be the
date of signature of seller.
- Buyer
has 3 days to transfer the EMD (Earnest Money Deposit) to escrow
- The seller will deliver a “clean”
title to the buyer at close of escrow
- Buyer
will have traditionally 10 days (7 days only when a cash deal) from the day of
“acceptance” to have all inspections and due diligence completed.
- Termite
inspection is paid and ordered by the seller (escrow will not close until a
“clear report” is delivered)
- Traditionally
the property is sold “AS IS” and no repairs are completed by the seller (this
is why we strongly recommend having a home inspection paid by the buyer)
- The
CC&r’s (home owners association covenants and rules) generally take up to 7
days to be prepared and sent to the buyer(at the buyer’s cost – about $250) and this is the only contingency that is left beyond
the 7 days (generally up 15 days) to enable the buyer to read and understand
the documents.
- The
buyer must release contingencies on the 7th day except for the
CC&r’s (10 to 15 days depends on the seller). At this time, the buyer still
has the option of cancelling the transaction and receives his EMD (deposit)
back.
- Past
that time, if you cancel you could lose your EMD
TIME
IS OF THE ESSENCE IN A BANK OWNED PROPERTY TRANSACTION
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