Very basic question re: making an offer and using title company

[Jon C.]

These may be very stupid qustions but here goes.

1. I understand that "making an offer" on a fsbo can be done however you want(verbal, notepad, whatever) before the contract is written. What about when dealing with an REO? Do you just fax a copy of the purchase contract with your numbers on it or is there some official form that is used?

2. After a contract is signed with the seller and I intend to wholesale the property, when do I give the sellers contract and paperwork to the title company? Do I give it to them right away even if I don't have a buyer yet so they can start the title search and whatnot? Or do I wait til I get a buy side contract completed, then give the title company everything?

[J Scott]

1. As Mitch said, every bank is different, but in general, they will ALL want you to submit the offer on a standard state-approved contract. Some listing agents may have a modified version of the standard contract (with some things crossed out, added, etc), but it will always be a version of the state contract. If you don't have access to the state contract, either ask the listing agent for a copy or -- better yet -- find a buyer's agent who can submit the offer for you and hold your hand on the first few deals.

2. You're not going to be allowed to assign an REO contract. If you want to wholesale an REO, your options are essentially to buy in an LLC and sell the LLC or buy with multiple names on the contract and quit-claim your interest to the other party.