Selling REO's

As a selling agent in today's markets, the entire process can range from very complicated to very simple. If you want to sell REO (Real Estate Owned) properties, you must familiarize yourself with the process, as well as, thoroughly educate your client on the process.

 

It is imperative that you "see the big picture".  This is not the same as dealing with Mr. and Mrs. Smith on ABC Avenue who have only their home to sell.

 

 

  You will often seen in the Agent Notes of the MLS system (or you should see), specific guidelines for offer presentation.  My contracts require that I collect all of the following as a complete offer package:

 

1)  As Is Florida Residential Sales Agreement

2)  Proof of Cash funds to purchase if this is a cash offer

3)  Pre qualification letter for appropriate funding

4)  Copy of the collected EMD

5)  Special Addendums (provided by the corp seller)

 

There are some variances to the above, but this is general policy.  The special addendums basically state all terms and conditions as well as certain Seller disclosure policies.  Also note, most of those addendums will also state that should the buyer be late closing through no fault of the seller, a daily per diem is charged to the buyer.  That fee can be as little as $50.00 per day and often seen as high as $150.00 per day.  That has to relate to the holding charges still being charged to the seller and that fee is automatically calculated into a 30-day close period when the seller accepts the offer. 

 

Now for some tips...

 

When you send me an offer, please be sure you send the full offer package in one mailing. Most REO listing agents prefer they be emailed in.  The faxing process is so over used that often times, one cannot read what was sent in.  The Rep does not get the full entire package at first.  The "nuts and bolts" of the offer goes into their OMS system and most often a copy of the proof of funding.  Most of our corporate sellers pay only the doc stamps on the deed and the Owner's Title Policy.  If you are going to ask the seller to pay more, then be specific on the costs on your contract.  Also please note...."Owner's Title Policy" means exactly that...just the policy...not any other title charges.  Last important issue on your contracts...they can never...never...be "assigned".

It really is not hard and frankly just good business these days especially with the price of gas. Pre qualify your client before you get in the car.  Most of these homes are selling "As Is" and no repairs are allowed before closing.  Usually no FHA, VA, or standard Conventional loans will do as all will require the buyer or a seller to make a lender called repair prior to closing.  Investor loans are already set up for these terms and conditions.  Owner occupants to be will need a renovation, rehab, or a 203K type loan or any non conforming loan that allows all repair after closing.  Keep in mind, grant assisted programs will not work on these type of loans mainly because of the repair issues and the required seller contribution to buyer's closing costs.

 

See...not hard...just follow the rules...and always, call the REO Listing agent for questions and any assistance needed. 

 

You are also welcome to email me directly for any questions you have at:  jane@allfloridahomes.com