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What Are Your Thoughts About www.OfferSubmission.com?

By Dawn Maloney

Real Estate Agent with RE/MAX Trinity Northeast Ohio Real Estate Specialist 2003008108

January 03, 2011 02:21 PM

offersubmission for REO properties

Have you used this website yet? I went to write an offer tonight for my buyer and did not like what I found.

We were not happy at all - a $300 fee for using the site? That is charged over and above the closing costs and is not any part of the closing costs?

And there is a 1% fee paid to ??? noted in the remarks on this property...for what? Use of the website?

I need to hear from someone who has used this site.

How do you protect your client on this site as you submit a binding offer with no room for contingencies or addendums...as well as agreeing to addendums you haven't seen until your offer is accepted? And if you decide you don't like the addendums, kiss your $300 goodbye, Mr/Ms. Buyer.

How about the part about the buyers SUCCESSORS, RESPECTIVE HEIRS AND PERSONAL REPRESENTATIVES becoming bound to the terms and conditions of the offer???

Looks terrible to me. Have you seen this?

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Ronald Jasgur

Woodward Asset Capital - Southfield, MI

Dawn-

Our process is paperless until offer terms are accepted by the bank. At that time, our system populates the bank's addenda for you to print, execute and attach to your local sales contract for delivery to the listing agent (along with proof of funds, EMD, etc). Anything not in the bank's addenda is controlled by your purchase agreement. At the end, everything still has to be in writing.

Standard contingencies like inspection, financing, title, etc are allowed. Anything out of the ordinary should be identified in the notes field of the offer terms for the bank's review/consideration.

Again, the idea here is to simplify and speed-up the offer presentment and negotiation process while assuring all agents (and their buyers) that they have an equal opportunity to have their offers reviewed without influence.

Hope that helps...and good luck :)

Ron

Jan 04, 2011 01:34 PM

Christina ONeal

At Home Real Estate Group - Ripon, CA

Realtor - Ripon California

Ewwww, I don't like the sound of this one. I have not had that happen around here yet.

my signature

Jan 16, 2011 03:14 PM

Dawn Maloney

RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH

330-990-4236 Hudson & Northeastern Ohio

Ron, we appreciate your input. We decided against writing an offer on this property due to the website's terms.

Christina, we didn't care for it, but I am still not a fan of any of the website for submitting offers. The consumers do not like it and do not trust the process.

Jan 17, 2011 05:43 PM

Ronald Jasgur

Woodward Asset Capital - Southfield, MI

Dawn- Sorry to hear that the website terms deterred an offer from your client. Accepted offers generate bank addenda to attach to your local board sales contract, which then become the controlling documents for the transaction as in any REO sale.

Best to get used to having to submit offers online for the sale of bank owned properties (and very soon, short-sales), as even Fannie Mae is testing an online offer portal in three markets currently. We consulted with them before their launch and they are very much behind a system that ensures all offers are received. No more finger pointing at the listing agent that offers weren't presented or were delayed.

To read a little more, check out http://www.housingwire.com/2010/11/22/offersubmission-fannie-pilot-validates-push-toward-online-reo-offers

Jan 18, 2011 12:14 AM

Dawn Maloney

RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH

330-990-4236 Hudson & Northeastern Ohio

Ron, I'm already used to using online systems for offers for REOs through HUD, Equator, RealtyBids, etc. I know the shortcomings, and believe me, if the best part of your site is the proof that an offer was submitted, let me say after 8 years I have never had an REO offer that wasn't submitted, so I don't consider that to be a huge problem.

The biggest problem is lack of communication with real people and these websites do NOTHING to help improve that.

Get used to it? I am sure you don't mean to appear to be smug, but if this is your approach to agents, I don't see much success coming your way. My concerns are the same concerns of other agents who represent buyers. And my buyer did not like the site and the wording. They were uncomfortable.

As a fiduciary, I have the responsibility to protect my client's interest. Your site doesn't do that.

Jan 18, 2011 02:33 AM

Anonymous

David M.

My thoughts...huh, These people are a joke. I agree with you Dawn. They are using Bait and Switch tactics here in California. My buyers and I made multiple offers on a property here and all 3 were rejected. The Listing agent has it listed at $59,900. When we went to Offersubmission.com the property was listed at $45,000. We finally agreed to come in with a full CASH offer of $45,000 and they still rejected it. They have no intention of selling it at $45,000. A Bait and Switch Tactic that is illegal. I have placed a phone call to the State's Real Estate Department to get them punished. Hope you all have better experience then we did. My buyers walked.

Feb 01, 2011 10:19 AM

#14

Dawn Maloney

RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH

330-990-4236 Hudson & Northeastern Ohio

Thanks for sharing your experience David. I would like to hear how your complaint with California's DRE goes. Please let me know when you get a response. It's frustrating and illegal.

Feb 02, 2011 01:40 AM

Anonymous

Terry Maness

Hi Dawn,

I do not agree that offersubmission.com is a good start regarding an offer. First of all charging a buyer a fee for another's service when we Realtors are the ones being paid to handle transactions is rediculous. I will hold my opinion on that and only give my thoughts to offersubmission.com. I went to submit an offer and fully read their terms... We are in California while this company is in Michigan of we know that our laws are different. Then verbage also mentions buyers agents as though it is the buyer/s and their agents are purchasing... I feel every board out there needs to look at this site and listen to the verbage. I thought when dealing with buyers/sellers on their transactions (exclude disclosures...) we had to be licensed? As it put's out there, anyone can handle buyers/sellers transactions from submission to negotiating to getting it in escrow.... Please, this company really needs someone to look at it as I would be ??? if I were to say ok buyer let's go ahead and go through with submitting on this site no matter what the verbage says and what your going to pay... I am very frustrated. I will be sending it to the DRE but first I am taking it to my broker and board here in the AV. Wish me luck dear as it sounds to me like you have made your own attempts. Oh by the way. Question. Why are agents accepting this company knowing what the verbage consist of? Sorry I just thought about that. I sent an email to the listing agent letting her know this all didn't sound very legal and asked that she submit the offer to the asset manager. We shall see tomorrow what happens. Hope hope hope. Take care. Terry

Mar 21, 2011 07:12 PM

#16

Anonymous

Terry Maness

Oh I just wanted to copy the whole thing that we get prior to submitting. So those who are reading can fully understand why we are a little frustrated here.

Company shall refer to Woodward Asset Capital, LLC, a Michigan limited liability company, owner and operator of OfferSubmission.com, with principal offices at 29623 Northwestern Highway , Southfield , Michigan 48034 , and/or any of its employees, agents, representatives, successors, affiliates, subsidiaries or assigns. Seller shall refer to the Owner, or their Agent, of a property available on OfferSubmission.com. Offering Agent shall refer to a real estate salesperson or broker licensed in the state wherein the Property is located, and/or any of its employees, agents, representatives, successors, affiliates, subsidiaries or assigns, and who is submitting this offer to purchase. Buyer shall refer to any person(s) or entity(ies), including the Offering Agent him/herself, who they have a relationship with and for whom they have the authority to act on behalf of and/or any of its employees, agents, representatives, successors, affiliates, subsidiaries or assigns who is utilizing OfferSubmission.com to submit an offer to purchase real property on Offersubmission.com. Transaction shall refer to any contract or agreement between the Seller and Buyer. By submitting this Offer to Purchase, Offering Agent hereby agrees to the following terms and conditions: 1. Authority to Offer. You have the authority to submit this Offer to Purchase on behalf of a Buyer. 2. Acceptance of Offer. You understand that if this Offer to Purchase is accepted by Seller, a legally binding and enforceable contract to purchase real property shall be formed. 3. Purchase of the Real Property. The Buyer, through the Offering Agent, agrees to purchase from the Seller the real property identified in the Offer submission page for which the Offering Agent has submitted an offer. The Buyer, through the Offering Agent, acknowledges that they are aware that the property offered by Seller is "As Is/Where Is" and that neither Company nor Seller represent nor warrant the condition and/or contents of the property, unless otherwise stated by Seller. 4. Financing. Buyer will be responsible for obtaining his/her own financing. 5. Binding Date. This Agreement becomes binding on the date when the following has occurred: (1) acceptance of the Offer to Purchase by Seller and (2) acknowledgement of Seller's acceptance by Offering Agent. 6. Closing. The Offering Agent and Buyer agree to consummate the purchase of the Real Property within the time and manner set forth in the Purchase Agreement between the Seller and Buyer. 7. Fee. Buyer shall pay and be responsible for paying Company's Offer Processing Fee as defined in the Submission of Offer. Such fee is earned by Company on the date an offer to purchase is accepted by the Seller. Payment of fee is due and payable at closing or disbursement. 8. Default. If the Buyer or Offering Agent defaults on any payments or obligations as set forth in these terms and conditions or any other section of this website, the Company may immediately terminate all the Buyer or Offering Agent's rights under this Agreement, at its sole discretion. Any failure on Company's part to not terminate Buyer or Offering Agents rights under these Terms and Conditions does not waive any fees owed by Buyer for the services performed by using the Company's OfferSubmission.com Website. 9. Assignability. The Buyer or Offering Agent shall not assign, set over, or transfer the Offer to Purchase or any other Agreement in connection with this website or any of the Buyer's or Offering Agent's rights or interests under the Offer to Purchase or any other Agreement in connection with this website without written consent from the Company, at its sole discretion. The Company may declare any such purported assignment void. The Company's refusal to consent to an assignment shall not entitle the Buyer or Offering Agent to terminate this Agreement or give rise to any claim for damages against the Company. The Company may assign its rights under this agreement at its sole discretion. 10. Representations and Warranties of Buyers Agent. Offering Agent reaffirms, represents and warrants to, and covenants with, Company all representations and warranties as outlined and agreed to in the Agent Registration , including but not limited to: • Licensure and Good Standing. Offering Agent is a licensed real estate agent or broker in good standing under the laws of the state where the Property is located. • Authority. Offering Agent has full corporate power and authority to make and perform this Agreement and the transactions contemplated in it on behalf of the Buyer if the Buyer is a corporate entity. If the Buyer is an individual the Offering Agent has the authority to submit this offer for the Buyer and can bind the Buyer to the terms and conditions contained therein. • No Breach. The acceptance of these terms and conditions and the performance of the Transactions provided for in them, do not conflict with or result in the breach of any of the terms, conditions or provisions of, or constitute a default under any indenture, bank loan, credit agreement or other instrument to which Buyer's Agent or Buyer is a party or by which its property may be bound or affected, • Authority to Execute. Offering Agent represents that it has the authority to agree to these terms and conditions on behalf of the Buyer of the property, and that, by its acceptance of these terms and conditions, the Buyers, their agents, advisors, officers, directors, assignees, employees, work persons, subordinates, and any affiliated and subsidiary companies, divisions or groups are bound by the terms of this Agreement. 11. Acknowledgements of Offering Agent. Offering Agent acknowledges that Company is performing solely as an independent party pursuant to the provisions as set forth in the terms and conditions within this web site, and not as the agent of any party. Company, as owner and operator of OfferSubmission.com, makes no promises or statements as to the condition thereof or the suitability thereof for specific purposes. 12. Limited Liability. Upon and performing the obligations and services stated in these terms and conditions, the Company shall be released from any further liability. Buyer and Offering Agent acknowledge that the Company is acting as a depository and is not, as such, responsible or liable for the sufficiency, correctness, genuineness or validity of the documents submitted to it or for the marketability of the title to any Seller property, or more specifically, the Real Property that is the subject of this Offer Submission. 13. Notice. All notices, consents, waivers and other communications between the Buyer or Offering Agent and the Company must be via e-mail to: info@offersubmission.com 14. Arbitration . Any and all disputes, controversies or claims arising out of or relating to the Offering Agent's use of this website and the services of the Company will be resolved exclusively and conclusively by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association. Such arbitration will be held at the offices of the American Arbitration Association located in Oakland County , Michigan. Any award or decision as a result of such arbitration will be final and binding upon the parties, will not be subject to appeal and will be enforceable by entry of a judgment by any court of competent jurisdiction. By agreeing to the terms and conditions set froth herein you are availing and subjecting yourself and the Buyer to the jurisdiction on the American Arbitration Association in Oakland County , Michigan and the Oakland County Circuit Court or the 48th District Court in Oakland County , Michigan. • Nondiscrimination. The parties acknowledge that discrimination on the part of any of the parties hereto because of religion, race, color, national origin, age, sex, marital status, height, weight, physical or mental disability, or familial status is prohibited by law. • Miscellaneous, Applicable Law, Waiver and Modification . The terms and conditions set forth on this web site shall be governed by Michigan law. If any term or provision hereof is illegal, invalid or unenforceable, the remainder of the terms and conditions shall not be affected thereby. The captions shall have no legal significance in the interpretation of the terms and conditions. No modification, change or discharge of these terms and conditions may occur orally, but only by further written agreement of the Parties or as otherwise expressly provided in the terms and conditions. Any provision of the terms and conditions which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of these terms and conditions or affecting the validity or enforceability of such provision in any other jurisdiction. A waiver of any of the parties of any provision shall not waive the other. No person or entity, except the parties, shall be beneficiaries of any kind of the terms of these terms and conditions. Notwithstanding anything to the contrary, the terms and condition are for the benefit of Company and are not intended to modify or amend any term within the Purchase Agreement between Buyer and Seller except as expressly provided herein. • Successors Bound by Terms and Conditions . The terms and conditions shall be binding upon and inure to the benefit of the parties and their respective heirs, personal representatives and successors. The parties agree for themselves, their heirs, personal representatives and successors, to do all acts necessary to carry out the intents and purposes of the terms and conditions. • Further Actions . The Parties agree to take all further actions and to execute and delivery any further documents and instruments as may be requested by legal counsel or otherwise necessary or appropriate in order to carry out and effectuate the terms and condition herein.

· Consent and Agreement: By clicking below in the "Accept" box, you acknowledge that you have read and fully understand the terms and conditions contained herein and agree to be bound by same as "Offering Agent" hereto. You also fully understand the limitations on liability that the Company has in regard to the Real Property and the Funds.

Mar 21, 2011 07:20 PM

#17

Dawn Maloney

RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH

330-990-4236 Hudson & Northeastern Ohio

Terry, you make some excellent points!

And, for the owners and operators of www.offersubmission.com, you should know that I have been getting your complaint calls, since this blog comes up on page #1 of google when people are looking for you. I have spoken to some extremely angry agents who are ready to sue you.

Mar 22, 2011 03:32 PM

Ronald Jasgur

Woodward Asset Capital - Southfield, MI

Wow....Not sure where to begin but I appreciate the forum.

OfferSubmission is a software as a service; a technology that is engaged by the bank or seller of a distressed asset for many purposes including a) assuring themselves and their investors that every offer for an owned property is reviewed, and b) that a full and complete audit trail of those offers is stored for regulatory review and compliance purposes.

OfferSubmission was created with input from real estate brokers, banks, servicing executives and legal advisors.

The seller can require payment of a fee as a condition of sale, which they choose to do when they begin using our service. They engage a local listing broker who acknowledges and agrees that all offers must be submitted via our site by the agent for the buyer and who also must disclose the requirement of the buyer to pay the processing fee at the closing. It is collected on the HUD-1 and disclosed to all parties. The fee is not paid by either agent, nor is it paid by the bank or asset owner who is taking a real-money loss on the sale of a property. The fee is paid by the party who benefits most in the transaction; the buyer who gets an offer accepted for the property they want at a great price. It is paid by the party that buys a property...not at time of offer and not by someone who doesn't perform.

It's interesting to me how much is made of the processing fee; it seems that so many REO listing brokers are charging some type of "compliance fee" to another broker's client and still getting away with it...yet their sellers have no idea it's even going on. I would argue (and I think most attorneys would agree) that a broker with a fiduciary responsibility who creates an undisclosed financial impediment to a sale is certainly not working in their client's best interest.

At OfferSubmission, we are not negotiators; we don't decision offers, we don't select agents, we don't set prices or determine values, and we don't execute documents. There's apparently much confusion about this...we provide a technology and a support system, but there are real people plugged in on the other side...bank employees and executives, outsourced asset managers, mortgage servicers, etc. Each seller handles things a little bit differently, and while we do consult with each client regarding best practices we don't get to tell them what to do. They make all of their own decisions and they push the buttons.

We do, however, provide speedy email support and we do provide accurate and important information to the buyer via their licensed agent...Information that you can typically only get from the best of the best REO agents; the ones that actually work their asses off on behalf of their seller. Unfortunately, the great agents are far outnumbered by those that are too busy or too distracted to care about you, your buyer or your deal.

When we hear from unhappy agents it is usually a simple matter of confusion...or a matter of an offer being rejected. We help them out when there is confusion and we can provide a real reason why a seller might have made a particular decision.

But more often we hear from agents who are happy to have had a level playing field, agents who are happy to have a clear way to communicate inforamtion about their buyer, the property or the reason for the offer terms they've submitted. It's empowering. And it doesn't cost them a penny.

I don't mind continually clarifying things here in your blog as long as you'll let me, I just wish the tens of thousands of agents who have had nice things to say would find it and join in the discussion, too.

Mar 22, 2011 05:49 PM

Anonymous

Terry Maness

I would like to know if anyone who is handling files at Offersubmission.com is a licensed in California Realtor? I still haven't received any response from the actual listing agent and am sure she is fully seeing what we agents are. I can't imagine any Realtor out there is in agreement or had any input to Offersubmission.com as it is not a very good business practice in my opinion for myself, office or clients. I do thank you Dawn for allowing me to inquire and give my opinion on this offersubmission situation. I can only hope that something is done with regards to it. Oh Ron, not to sound as though I wish to argue but the banks must approve documentation that is put out there with regards to those who represent them. I have closed many REO homes and our office does major listings for them as well. I don't feel there is a bank out there that would allow any company to just put things out there without there ok john henry on it. Please if I am wrong let me know. I do thank you and please again don't take me as being in an awnry mood, smile. Have a wonderful evening Dawn, smile.

Mar 22, 2011 06:05 PM

#20

Anonymous

Terry Maness

Oh my update as to my offer, I didn't hear back from the agent that I requested she submit it to the asset manager, sadly to say. Again thank you Dawn.

Mar 22, 2011 06:38 PM

#21

Ronald Jasgur

Woodward Asset Capital - Southfield, MI

Terry-

Not sure I follow...The bank requires use of our system and its use is outlined when a new listing is assigned and accepted...it's a condition of the listing assignment. So yes, every agent is in agreement. And we don't handle "files", we handle data.

OfferSubmission isn't required to be licensed as as a real estate broker...we don't work in any agency capacity and we aren't hired to negotiate contracts or market a property. The bank hires a listing agent for each property (as you're aware), and there certainly isn't a legal reason why a seller would ever need to hire 2 different listing agents.

Our system turns out the bank's own specific addenda with the approval of any offer...so not only does the seller approve the documentation, their legal departments have drafted them.

Again, we contract with the bank, servicer or asset manager. They mandate the delivery of offer terms via our system. The listing agent is specifically not allowed to submit offers on behalf of other agents, and the seller won't review any paperwork until an offer is first approved via OfferSubmission. When an offer is approved, the addenda from our system is attached to your state or local board-approved sales contract and then delivered to the listing agent, just like the old way of doing things. The listing agent no longer has to respond to status-checks and follow up calls from cooperating agents because every offer is received and confirmed immediately...and then updated via negotiations or decisions as the offer is reviewed.

For a new listing that might receive a dozen offers, that means the listing agent no longer has to forward 12 offer stacks or perform mind-numbing data entry of 12 sets of terms into an asset management system like Equator or Res.net...and then request H&B from 12 agents in order to do it again...and they certainly no longer can be accused of not submitting every offer (unless, Terry, you choose not to follow the agent's and the bank's instructions to use OfferSubmission). The elimination of that liability alone is worth it to most brokers handling REO inventory today.

The seller has rights in a real estate transaction. They have the right to specify how they wish to receive offers and the listing agent who has agreed to take a listing with this requirement is fully engaged and aware of the process. The listing agent receives every offer in real-time and those offers are delivered to the seller in real-time, faster than ever before and in compliance with laws in all 50 states. In CA the code likely reads "agent must deliver all offers to seller as soon as possible"...and it doesn't get quicker than instantaneously.

I hope that this helps you to understand a little bit more...with each new technology there can be confusion and misunderstanding, but being new doesn't make it illegal or unethical....just new.

We always welcome comments, concerns and questions, and we continually make improvements and implement new features as a result of input from agents. Being critical is great, but change or enhancement recommendations brought up in our agent support team meetings have to be considered from the view of all participants to a transaction...the buyer, the two agents, the asset manager, the seller/servicer, and the investor/bank.

This isn't the proper place to make a recommendation or ask a question necessarily...I would suggest sending a note to info@offersubmission.com

Hope that helps,

Ron

Mar 22, 2011 11:51 PM

Ronald Jasgur

Woodward Asset Capital - Southfield, MI

And Dawn...by the way...your initial question/post suggests there is an additional 1% fee (there isn't) and that a buyer has to pay $300 if "they don't like the addendums" (also not true).

The fee is disclosed up front and paid at closing...and collected on the HUD just like any other real-estate sale related charge. In many cases we see it paid with seller concessions (if approved) but it is a cost of acquiring a particular piece of real estate. It is paid whether a cash sale or a financed transaction, and the amount is not predicated on a sale price.

It's one thing to ask the question "What are your thoughts about OfferSubmission" and ask for responses. But your initial post includes inaccurate information which more than likely creates additional confusion.

Mar 23, 2011 12:04 AM

Anonymous

TIM

I dont mind paying the $300.00...my problem is that I offered $79,000 "CASH" for a property that was listed at $65,000...I received an rejection email..stating that the seller had rejected my offer...but that I may sign back on and enter an "IMPROVED OFFER" !!!!!!......WTF!!

Jul 17, 2011 04:38 AM

#24

Anonymous

Ryan

This site is a joke! They counter back to full list price (which is 10-20% OVER market value) on every single offer we make! We wrote on one property that was listed for 180 days at 305,000.... we offered 275,000 (market value supported by comps) and they countered to 305,000... I highly doubt this is an unbiased REO company... there is something shady going on over there, they have terrible business practices, refuse to negotiate to fair market value, and simply auto counter any offer made to list (I have made 3 now, all at fair market value supported with comps)... buyer beware, there is something very strange about this "REO" company...

Feb 15, 2012 11:48 AM

#25

Anonymous

Ryan

This site is a joke! They counter back to full list price (which is 10-20% OVER market value) on every single offer we make! We wrote on one property that was listed for 180 days at 305,000.... we offered 275,000 (market value supported by comps) and they countered to 305,000... I highly doubt this is an unbiased REO company... there is something shady going on over there, they have terrible business practices, refuse to negotiate to fair market value, and simply auto counter any offer made to list (I have made 3 now, all at fair market value supported with comps)... buyer beware, there is something very strange about this "REO" company...

Feb 15, 2012 11:49 AM

#26

Anonymous

Phil Makarewicz

Hmm...I'm getting ready to make an offer on a whole whopping 50k property...co-oop commission states 3%- $ 625 plus $ 300 processing fee....Sooo ( 50,000 x 0.03) - 625 - 300= $ 575.00....Someone needs to give these people a reality check, its obvious someone is pocketing my hard earned money....Sorry OfferSubmission.com...decided to go with a neighboring house for this same price and full 3%.

Dec 16, 2013 12:43 AM

#27

Ronald Jasgur

Woodward Asset Capital - Southfield, MI

Wow...I love old threads:) Phil, offersubmission is a software platform, not the seller. The $300 fee is collected from the purchaser of the property at closing, not deducted from an agent's commission. The banks using our platforms (as well as 3rd party asset managers) set their prices and pay commissions according to their listing agreements with the listing broker in all parts of the country. We have absolutely nothing to do with the commissions paid nor the amounts offered, but I'm sure you're aware that commissions are negotiable. The public inference that you'd steer a buyer based on your compensation is highly unethical and likely unlawful.

Dec 16, 2013 01:24 AM

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