What are the requirements for placing an offer?

If you are obtaining a mortgage to buy the property:   You must be pre-approved with a lender.  The pre-approval letter must be submitted with the offer and should state the following information:  income to debt ratios have been verified and are satisfactory, and include your credit scores if you permit and that you're approved to qualify for a loan in the amount requested.  If you are getting conventional financing, the banks want a minimum of 10% down. You can put 5% down once the offer is accepted and 5% after the inspection (7 days).  If you are getting FHA/VA financing, 3% is needed.  Closing must take place within 30 days.

If you are paying cash:  proof of funds must be provided with all offers to show that you have the funds to close the deal.   The banks want a minimum of 10% down and closing should take place within 20 days. You can put 5% down once the offer is accepted and 5% after the inspection (7 days).

All offers must be in writing.

Banks expect the inspections to be completed within 7 to 10 days.  This will be specified on the Addendums.

Corporate addendums are required once the offer has been accepted.  Banks can take anywhere from 24-72 hours to send the addendums.  Once the addendums are received, the buyer will have 24 hours to review, sign and return the addendums and contract.  

In most cases, the seller is paying for title insurance, therefore, you must close with the seller's closing agent.

If I am negotiating an offer, will the property still be available to other buyers?

Yes, the property is available to anyone who may be interested until the seller has accepted an offer.

What happens if there are multiple offers on the property?

If there is more then one offer on a property, don't worry. . . everyone has a fair shot. The bank will ask all parties to give their  "highest and best."  Highest and best means the bank is asking for all parties to submit their highest offer with the earliest closing date.  This must be submitted within 24 hours.   The highest and best counter offers from all parties are confidential between each buyer and the seller. The seller will then respond with an acceptance or rejection to your offer and the other offers.

What is the time frame for acceptance on offers and signatures on contracts?

Banks can take anywhere from 24-96 hours to respond to an offer.  Please be patient.  We will contact you as soon as we have an answer from the bank.

"Time is of the Essence"

Once a contract is signed, everything follows a strict time line, inspections, loan commitment, and closing.   You must speak with your mortgage person on a regular basis to make sure the loan process is on schedule.  The banks want the contract to close by the closing date on the contract.  They may extend the closing for a short time, however, you may be charged for the extension. Usually the fee is a minimum of $100 per day.

Don't let this information concern you, buying a bank owned property is much like buying from an individual seller. We will be here to help you through the process.  Buying bank owned property is a good way to buy at a great value!!

For more information contact

Richard Scott
EXIT REALTY
561-236-7717
rick@exitrealtyglobal.com
www.homesinwestpalm.com