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Some people think working with bank owned properties will be an administrative nightmare and do not want to bother working in this field. Other than a couple more documents that the corporate owner use it is just the same as any other transaction except it a great opportunity for your client. The banks have a property in their inventory because someone became financially overburdened and could not meet their commitments and the bank had to take the property back and is now left trying to sell the property to get their investment dollar back for their stockholders. The banks are not in the business of marketing or selling residential real estate. They want to sell this inventory and at minimum break even and if possible make a profit on the transaction. Usually the property is placed on the market using wholesale pricing to make it an attractive purchase for a potential buyer. This means your client has an opportunity to purchase a property at a whole sale rate. It's truly a win - win for the buyer and the bank. Sometimes the property is pristine and many times the property needs some help because the former owners left it a mess. Usually the wholesale price reflects these issues. Once again - a win - win. The bank gets the property off their inventory list and the buyer picks up a property at whole sale. Making An Offer: Make the offer just as you normally would. Complete your usual Arizona real estate contracts/documents and share with your client that this is a corporate owned property and you will need to use a couple of their documents as part of the transaction. There is two documents that you need to share with your client before you submit your offer. These document are required as part of the transaction but are not necessary until they have accepted your offer. Once the bank has accepted the offer they will provide the Bank of America completed Purchase and Mold Addendums for the buyers approval. These are expected to be returned to Bank of America within 24 hours of the buyers agent receipt of those documents. The property will remain Active on the market until we have a fully executed contract. On line 27 of the Arizona Residential Resale Purchase Contract check the "Other" box and enter the following: a. Seller's Purchase Addendum b. Seller's Mold Addendum Make sure you download both documents so your client can review them in advance of submitting the offer. They will be needed later in the transaction after Bank of America accepts the Buyer's offer. This identifies that your Buyer has seen and is familiar with the addendums in advance of submitting any offer to Bank of America. The two documents that you need to review with your client are available to download as follows: Your client will need to have a pre-qualification letter from a Bank of America Home Loans, Inc. (BofA) office and submit it with your offer. It must be from a BofA office. If the buyer is paying cash they will need a letter of credit from their bank stating they have the funds to purchase that house at the offered price. The Buyer is not required to obtain financing from BofA. The Buyer may obtain financing from any source. As an incentive for the Buyer to obtain financing from Bank of America, BofA will offer a free appraisal and a free credit report if the Buyer finances and closes the purchase of the property with financing from BofA. You can contact a local Bank of America Branch representative shown below.
First American Title (AZ) As you can see, the process requires a couple of extra documents and the pre-qual through the corporate owner but other than that it's pretty much business as usual. If you have any questions on the process or properties we have on the market, just call or email us and we'll be happy to help. Your direct link back to this page is http://REO.LuxuryValleyHomes.com/ Thanks and Have a Great Day! - Call Jeff Daley at 480-595-6412 with any questions. |
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Amy Carlson, Home Loan Consultant
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