General
BUYING AN REO PROPERTY
Purchasing a corporate owned property is a different process than buying from an owner/seller. Buyers and Buyers Agents who are not familiar with the process can find this to be a frustrating task.
EARNEST MONEY
Please be aware of seller requirements regarding inspections, financing approval and closing dates. These dates must be held to, or the seller could cancel the contract, earnest money may become non-refundable or per diem penalties may be applied.
EXEMPTIONS
Foreclosures are exempt from the NC Property Disclosure Statement. The seller never occupied the property and has NO history about the property. The seller cannot confirm or deny any supposed defects to the property which may be claimed by any third party (such as a neighbor).
FINANCING CONTINGENCY
Make certain that your lender is aware up-front of any financing contingency dates.
INSPECTIONS
Oftentimes REO properties are sold as is, and priced accordingly. It is recommended that buyers obtain inspections as outlined in seller addendums and contracts and pay special attention to any timelines in this regard.
MAKING OFFERS
When making an offer, please remember that the seller is a corporation. Our contacts are employees who work regular hours, do not work weekends and do not work holidays. Please do not expect to get a response late at night, on weekends or on holidays. With the influx of foreclosures in the United States, offer response times can vary greatly depending on the client and the number of properties that they are handling. They typically will not be motivated to respond based on “offer expirations” and they are not set up to work with price escalation clauses, and will typically not accept assignable contracts.
MULTIPLE OFFERS
We work hard to generate interest in our listings and multiple offer situations are common. Should the property you are offering on become subject to multiple offers, your agent will be advised on how to proceed. Please consider that it is the seller’s choice on how they respond to offers.
REQUIRED USE OF SELLERS CLOSING ATTORNEY
Some corporate sellers have addendums which require the buyer use their closing agent (attorney) or title company. If this is the case, this is not optional and any changes to the seller's contract forms will void your offer. If the seller's closing attorney is not local they may provide a traveling "closer" to come to your agent's office or may provide a "mail-away" closing. Refer any questions regarding title insurance or title searches to your agent.
SELLER REQUIRED ADDENDA
Whenever possible, we will leave copies of the seller required addenda inside the house. Some sellers provide addendums along with a seller acceptance package. These addendums will often include provisions regarding closing date, lender/financing requirements and timeframes, and inspection dates. These forms supercede the NC Offer to Purchase. It is important that your agent be familiar with the requirements contained in those addendums, as the seller will hold any buyer to the terms of these forms.
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