Example of an REO offer form?

Question

Hey BP, I know a lot of you guys are bidding on REO's, and I know that you guys always state an offer is more likely to get accepted if there's no inspection period, no financing contingency, etc...

I wanted to know if any of you guys could actually post an actual offer to purchase form that you guys use that state these things. I'm very interested to see the wording used in the different offer forms you guys use for REO's. I've looked in the fileplace, but there doesn't to be one that would be good for REO offers (no inspection contingency, all cash, etc). Thanks in advance!

J Scott · Answer

REO offers should be made using your state specific contract...

Andy Chu · Answer

Many of our clients are the banks ( helps that we are the foreclosure capital). Most banks hire asset managers and they each control 200+ properties in different geographical location with different local customs and rules.

Long story short, whatever your offer is and verbiage, we send it to the bank with this basic set up.

Sales price 
Closing costs requested
Home warranty 
Repairs
Actual close date
Due diligence 
Financing/cash
Earnest money deposit

These are the basic terms of any real estate contract. The rest of the verbiage goes by the wayside because the bank will send bank addendums that will supersede any local state contract or attorney drafted contract.

Hope this helps

John Bowen · Answer

Dealing with one now. Bank owned REO commercial complex in Texas. Owned by a big bank holding securities from another in trust with an asset managment company that had hired a local property managment company to run it. Sent a letter of intent, they agreed to the offer and sent this twisted contract with everything based out of Maryland and DC. It would not fly so we sent one on Texas association of Realtors standard form. It's their contract or nothing. So we have been told to mark up what we don't like on their contract and send it back. It has been 60 days since we sent the offer and we still don't have a contract even though we agree on the price.
Big bank toxic mortgage items can take a while to get done.

Tom A. · Answer

You're welcome, but I pretty much just repeated J's post.  :)  Didn't see J's response before I submitted mine.

Anthoy James · Answer

Ah ok, got it J, thanks.

Tom, thanks for the reply as well. I got it now.

Tom A. · Answer

There are no clauses per se that I put in when submitting an offer on a REO.  Most times the bank addendums would just cancel them out anyway.

I use a Purchase Agreement that's pretty neutral, not favoring buyers over sellers or vice versa.  As simplistic as it sounds, it's just a matter of filling in blanks or checking appropriate boxes.  It's not a state form but it's used throughout my brokerage's offices for clients on either side of a deal.

For example:

Financing:   Check "Cash" as opposed to "Cash Sale with New Mortgage", "FHA/VA" or "Land Contract"

Inspection:  Check "Buyer does not wish to perform an inspection"

Closing:  Write in "10 Days" or whatever you can do.

EMD:  Put a sizable number in the blank, not just $1000.

Where the creative clauses may come in is when you're offering on a non-REO, non-short sale property.  When the banks are involved it's usually their way or the highway.

J Scott · Answer

The standard clauses (inspection, appraisal, financing, etc) are likely going to be included in the state contract -- you'll just need to include those pages or check the right boxes.  Your agent should be able to provide you with a copy of blank contract so you can see for yourself.

As for posting a state contract here, that's likely a copyright violation which is why nobody is doing it.

Anthoy James · Answer

Anyone? It's not so much the form as it is just my curiosity in seeing how different investors put different clauses in their REO offers.

Anthoy James · Answer

I know, I'm not looking to use someones contract for my state, I just wanted to see an example of the ones you guys use. I'm going to revise mine with my attorney.

Example of an REO offer form?

Most Popular Reply