Ok, I'm learning all kind of terminology, abbreviations and REI slang, today I was looking for some properties on the internet and found a bidding web page and in some properties it says this:
"Note: This property is associated with a special servicer. Winning bids and offers for special servicing properties are subject to approval through a third party financial institution and are not guaranteed approval. Bid/offer review and contract generation may take several weeks. "
Does anyone here bought a property under this conditions or can someone explain to me what does that means?
Let me see if I can shed some light here ...
(1)Bank or Large Investors | (2) Servicer (Collection Agency)
1) the Bank or Large Investor may choose a 2) Servicer. The Servicer Collects the monthly payments from the home owner and is compensated a marginal fee.
In this case your offer would be submitted to the Servicer and the Servicer would forward the offer to the Bank or Investor for approval.
It's a little more involved than this, but this explanation should give you the basic idea how it works. Most larger Banks and Institutional Investors do not want the hastle of collecting loan payments this is why they contract servicers to do this task.
Hope this helps you get started
@Ronald Bourgeois thank you so much , it's clear to me now!
? So I'm currently working on a offer for a property that has this same disclaimer.. But now I see they're asking for 4.5% for Buyers Premium to be paid @ closing & added to winning bid. Does this mean I'll have to pay this in addition to the regular closing costs?