Information and Instructions in purchasing our REO Properties


 

WHEN SUBMITTING AN OFFER ON OUR REO PROPERTIES. FAILURE TO READ, MAY DELAY YOUR OFFER SUBMISSION AND FINALIZING CONTRACTS AND/OR REJECTION OF OFFERS BEFORE OR CONTRACTS AFTER ACCEPTANCE.

THE FOLLOWING INSTRUCTIONS ARE ALSO NECESSARY FOR INSURING NO ISSUES WILL OCCUR WITH INSPECTIONS AND/OR THE CLOSING PROCESS. 

THANK YOU FOR YOUR COOPERATION!

 

 

 

REO Offer Procedures for Selling Brokers

Dear Broker:

Thank you and your client for interest in our REO Property, please review this procedures form and email charlottereo@gmail.com if you have any questions. Thank you!

**THE SELLER HAS INSTRUCTED THAT ALL OFFERS WILL NEED TO BE SUBMITTED ONLINE AT: www.HomePath.com 

Our bank foreclosures sell, on average, in 90 days or less. They are priced competitively in the marketplace. It is not unusual to have more than one offer at the same time and you will be notified of a multiple offer situation. All offers must include the necessary seller forms/addendums located on the left hand column.

Please make sure your offer uploads include one file for the seller addendum which should include the necessary buyer signed forms, such as the Owner Occupant Certification and Lead Paint Addendum. One file should be the NC Offer To Purchase and should include all necessary supporting documents in this file, such as the copy of earnest money check(can be personal check for offer,) and the pre-qualification/pre-approval or proof of funds letter. Please include all supporting documents in the state OTP file.  All files should be in a PDF format. There are limited uploads and all information will need to be submitted.

ADDITIONALLY,  these properties must be on the market for 3 days before offers are considered and is open to owner occupied for the first 20 days.  Once the "First Look" days have expired, all offers will be accepted (ie. investor, non-owner occupied, etc).  You should verify what the current status of this property is first.  To do so, please go to www.HomePath.com and search for the property of interest.  It will be noted on the detail page if it is still in the "First Look" status and how many days are left. 

PREQUALIFICATION

Before submitting an offer, if your buyer is financing the purchase, It is strongly encouraged that an offer includes proof of funds (if cash offer), or pre-approval (if financing) and is a requirement for seller's final acceptance. Your Buyer can obtain a pre-approval from an Approved HomePath Lender.

Offers lacking this document will be considered incomplete and will be potentially REJECTED by the seller until received.

IF BUYER IS USING PUBLIC FUNDS SUCH AS NEIGHBORHOOD ASSISTANCE, YOU MUST PROVIDE THIS INFORMATION AT TIME OF OFFER SUBMISSION IN HOMEPATH!!

SELLER’S STANDARD ADDENDUM

All offers MUST include an up-to-date NCAR Offer to Purchase and Contract, as well as Fannie Mae's  Sales Addendum. Please make sure terms in both match.

EARNEST MONEY GUIDELINES

Earnest money deposit acknowledgement MUST be sent to listing agent when buyer signed contract is submitted for seller's signature.

FINANCED SALE OFFERS  

$750 - $1,000 – Homes priced under $100,000+ 

$1,000 - $3,500 – Homes priced $100,000 - $500,000

$5000 - Homes priced $500,000+

Or deemed necessary by the seller.

ALL-CASH OFFERS 

►10% of Sale/Offer Price Should Be Earnest Money(If sale price is $50,000, EM should be $5,000)

* Cash offers with less than 10% earnest money will be rejected by seller.

Earnest money is non-refundable AFTER the 10 day inspection period, BEGINS AT HOMEPATH EMAILED ACCEPTANCE. When submitting the offer you can include a COPY of a personal check. However, if the offer is accepted, ALL Earnest Money checks must be in the form of certified funds and made out to buyer's choice or a seller accepted escrow agent. REMEMBER TO COPY CHECK FOR CONTRACT PACKAGE.
 

Buyers Name on OfferThe BUYER'S name/s on your offer should match the name/s that the property will be deeded in. Also, please in-put the same name/s when submitting to HOMEPATH.


 →IN ORDER TO SUBMIT YOUR OFFER, YOU MUST HAVE THE STATED EARNEST MONEY IN YOUR HANDS, ACCORDING TO NCREC.

 

DISCLOSURE

The seller or 3rd party did not occupy the subject property and it is a foreclosed property in which is exempt from NC property disclosure statements. Therefore NO disclosure is provided. You DO have the right to a 10 day inspection, from acceptance. This will be 10 days and not 10 business days. The 10 day period will start at time of verbal/email/HomePath acceptance. Please do not ask for any previous inspection reports, as there will be none available.

All Oil and Gas rights on NCAR Offer/Contracts will be marked "No Representation"

PERSONAL PROPERTY

All properties are sold “as-is.” If personal property such as refrigerators, washer/dryers, etc. are present in the house after the house has been trashed-out and/or repaired, they will remain AS IS.

OFFER TIMELINE

Keep in mind, this property is owned by a bank. The Seller does not work on weekends or holidays, so any offers submitted on a weekend, or a holiday will be submitted the next business day. Typically offers are answered within a few hours during the week. However, the Seller can take up to 48 hours (2 business days to answer offers. If there are multiple offers, the answer time could take longer).

TERMITE INSPECTION

The Seller has not inspected the property for termites. It will be the Buyer’s responsibility to inspect the property for termites during the buyer’s inspection period to determine any active or prior infestations. The cost of that inspection will be the buyer’s responsibility. If the buyer’s lender requires buyer to have a clean termite letter dated 30 days or sooner from closing, the cost of that letter shall be the buyer’s.

CLOSING COST

ALL CLOSING COST NEGOTIATED WILL INCLUDE ANY HOME WARRANTIES. SELLER WILL NOT PAY FOR HOME WARRANTIES SEPARATE FROM NEGOTIATED CLOSING COST.

CONTINGENCIES

The seller will not accept an offer with any Contingency, other than Qualified Financing.

INSPECTIONS

Inspections can be done up to 10 days after verbal acceptance. Inspections are for “Buyer's Informational Purpose.” The Seller only considers repairs if they are required by the lender, but the price of the repairs may be added to the sales price. Please make your offer accordingly. All cash investor sales are sold AS IS and no repairs will be considered.

Additionally, "N/A" should be placed by the Due Diligence Fee under Section 1.  Also, in 1(j), please insert the following language: "10 day inspection period as provided in Real Estate Purchase Addendum." Do not mark make mark outs in the either state contract or seller addendum.

UTILITIES

SCP-REO will disconnect utilities on the scheduled day of closing regardless of what time of day the sale is closed. It is your buyer’s responsibility to have any final walk-thru’s completed requiring utilities services and to have utilities transferred into their name by the original date of closing. If the closing is delayed because of buyer’s or buyer’s lender’s actions and utilities are disconnected, SCP-REO will have no responsibility to re-connect utilities. Please consider using a cooperative home inspector who will have servicers to perform small task such as turning on pilot lights in order to avoid inspection delays and/or charge a re-inspection fee. IF POSSIBLE, the utilities will be connected at our homes and it is the buyers responsibility to insure that items such as pilot lights are turned on, if deemed necessary to complete the inspection. ***If utilities are Not connected at time of contract, it is the buyer's responsibility to ensure they are on for any inspections.

++++ Please note, if utilities are confirmed to be on and inspection has been completed, it is the Buyer's agent's responsibility to have all breakers and water shut off valves on for appraisers. +++++

 

*** Please contact Sarah Martin at scpreoassist@gmail.com for utility information.

DE-WINTERIZING

If a property is winterized and buyer chooses to perform inspections on the property, buyer agent must request de-winterizing 3 days prior to buyer’s inspection. We must order the de-winterization and it takes the contractors 72 hours to complete. It is advised that buyer's agent check the property prior to inspection date to insure all utilities and de-winterizing is sufficient for inspection. Seller will not be responsible for rescheduled inspection cost. Please contact Sarah Martin at scpreoassist@gmail.com for de-winterizing request.

 

REAL ESTATE ADDENDUM(UPDATED)

The Real Estate Addendum overrides the contract and any special stipulations in the contract. Please Read It Carefully!

The addendum has been updated to request buyer's choice of escrow, this must must be intialed at 10f. By using seller's escrow, certain title cost will be paid by seller, these cost will not be paid by seller if using an outside escrow company.

SECTION 3 OF THE SELLER ADDENDUM WILL BE STRICTLY ADHERED TO. IF THERE IS A NEED FOR THE EXTENSION OF THE BUYER'S LOAN APPROVAL, BUYER WILL NEED TO RECEIVE SELLER APPROVAL. OTHERWISE, AN UNCONDITIONAL BUYER LOAN APPROVAL COMMITMENT WILL NEED TO BE SUBMIT TO LISTING AGENT BY REQUIRED LOAN CONTINGENCY DATE.

You must use the downloadable Addendum when submitting offers. Once the offer is accepted, you will be sent a populated Addendum for your buyer to sign.

**The local sales contract must include the following language referencing the Real Estate Purchase Addendum:

“Pursuant to Section 28 of the Real Estate Purchase Addendum, this document is subject to all terms and conditions set forth in the Real Estate Purchase Addendum.”

 

OWNER OCCUPANCY CERTIFICATION

Only the Purchaser's that plan to live in the house need to sign this certificate as well as the selling agent.

*If the purchaser signing this certificate owns other homes, you NEED to let us know and send us the address of the other property with explanation of their current and future status/use.*

THE OWNER OCCUPANCY CERTIFICATION FORM IS AVAILABLE IN THE DOWNLOADABLE FORMS AT THE LEFT COLUMN OF THIS WEBPAGE.

CLOSING DATE

Picking a reasonable closing date allows some time for countering (30 to 45 days out; however we can usually close cash deals within two weeks). The Seller's do not like to extend the closing dates. It is easier to make the closing date farther out and close early than to request extension. Make sure you tell your lender that the closing package must arrive at the attorney’s office a minimum of 48 hours before closing.

 

**INVESTOR DEED RESTRICTION**

If you are purchasing the property as an investment property (anything OTHER than a primary residence is considered investment to the seller, this includes licensed real estate agents) Please check #14 on the Real Estate Addendum. The Seller will not transfer the property to an investor without a deed restriction.

The Deed restriction states that the Purchaser can not sell the property or obtain a security interest (get a loan) on the property for more that 120% of the purchase price for a period of 3 months.

Please see #14 on the Real Estate Purchase Addendum for the complete verbiage. PLEASE ADD THIS TO THE ADDENDUM WHEN SUBMITTING AN OFFER FOR INVESTOR PURCHASE.

MI APPROVAL FOR OFFERS

Many banks/lenders had their portfolios of mortgages insured against loss due to a borrower's default, especially those loans that were originally made to borrowers with less than 20% down payments. For this reason, each of these foreclosed loans becomes an open claim with a mortgage insurance carrier. This claim is traditionally settled when a foreclosed property is eventually sold to a new purchaser. However, the mortgage insurance carrier has the right to take title to the house and pay the lender directly for the loss if they feel, based on their data and projections, that they have a better opportunity to reduce their own losses by taking title and reselling the property themselves. It doesn't happen very often, but it is part of the process. MI approval of a sale price typically only takes a day or two.

 UPON ACCEPTANCE

Upon verbal acceptance, the acceptance WILL be conditioned on Management approval, Mortgage Insurance Company Approval and/or Quality Control Approval. Once you are notified by the listing agent of  full approval(s) you will receive a populated seller approved addendum with negotiated terms. You will then need to submit one clean copy of the state purchase and sale agreement with the AGREED UPON terms, seller addendum, and other forms needed, with complete initials and signatures to the listing agent ASAP. Once we have a Verbal Acceptance – there is NO more negotiating. If there are any questions please email the listing agent regarding the issues.

***ANY CHANGE TO THE TERMS OF THE CONTRACT/ADDENDUM AFFTER ACCEPTANCE MUST BE APPROVED BY THE SELLER THROUGH A SELLER AMENDMENT SIGNED BY BUYER AND SUBMITTED PRIOR TO THE CHANGE. THIS INCLUDED TYPE OF LOAN, EXTENDED CLOSING DATE, EXTENDED LOAN COMMITMENT DATE AND ANY CO-SIGNORS FOR LOANS.

IF LOAN COMMITMENT DATE IS NOT MET AND EXTENSION NOT APPROVED PRIOR TO, THE CONTRACT MAY BE TERMINATED BY THE SELLER.

 

OFFER PRESENTATION POLICY:

Note: Seller will not allow us to present any offers until all of the BELOW items are complete.

SIGNED AND INITIALED NC/SC OFFER TO PURCHASE AND CONTRACT

FOR NON-INVESTOR OFFERS, AN OWNER OCCUPANT CERTIFICATION SIGN

SIGNED AND INITIALED SELLER ADDENDUM

PREQUALIFICATION LETTER OR PROOF OF FUNDS

COPY OF EARNEST MONEY CHECK

 

Seller negotiates through HomePath until acceptance. A HomePath acceptance email will be sent to buyer's agent upon acceptable terms.

If more than one offer is received on a property we will inform you via a “Multiple Offers Notification” Form and you can usually expect a counter with "Highest and Best" and a time frame of 24 to 48 hours to reply.

Please make sure to resubmit your offer through www.HomePath.com when you receive a "Multiple Offers Notification" from HomePath.

Thank you for your interest in the property and we look forward to working with you!

 

OFFER SUBMISSION REQUIREMENTS::
(WE SUGGEST YOU COPY AND PRINT THIS AND USE IT AS A CHECKLIST.  TO PROTECT YOURSELF FULLY, YOU MIGHT ALSO HAVE YOUR BUYER(S) SIGN THIS ENTIRE INFORMATION TO KEEP IN YOUR FILE-IT WILL NOT BE PART OF THE CONTRACT)

All offers must include the following prior to presentation:

_____________* Contract Cover Form

-Please read updated addendum carefully as there has been specific changes to the buyer's choice of closing attorney. The buyer will have two options for escrow. **

-The Purchaser's name has to be exactly the way it will be on the title, please add ONLY, Fannie Mae as seller.

_____________* Completed Real Estate Purchase Agreement (NCAR Form) MUST MATCH ALL TERMS OF SELLER ADDENDUM.

-Earnest Money, CERTIFIED FUND is to be made out to either Buyer's attorney or instructed otherwise.

_____________* Completed “Real Estate Purchase Addendum” include the REO ID number from HomePath. Make sure to have Buyers initials on each page and signed. A SELLER POPULATED ADDENDUM WITH HOMEPATH ACCEPTED TERMS WILL BE SENT TO BUYERS AGENT UPON SELLER ACCEPTANCE. THIS USUALLY TAKES 24 HOURS. PLEASE START INSPECTION SCHEDULING AND ANY DEWINTERIZATION REQUEST AS THE CLOCK IS TICKING AT THIS POINT.

-The Acknowledgement date is the date of Verbal/HomePath/Emailed acceptance. For the offer you can leave this blank.

-Please DO NOT scratch through or MARK OUT any items on final NC/SC OTP/CONTRACT or the SELLER PURCHASE ADDENDUM, SELLER WILL REJECT IS TERMS DO NOT MATCH AND OR ANY MARK/SCRATCH OUTS IN THE NC/SC OTP/CONTRACT OR SELLER ADDENDUM.  The terms are NON-NEGOTIABLE.

_____________* Copy of Earnest Money Check.

_____________* If your buyer is asking for the Seller to contribute any closing costs, Home Buyer warranty, repairs, other fees, etc. or has any contingencies/requests must be stated in paragraph 38 of the Fannie Mae Real Estate Purchase Addendum. You must use exact dollar amounts and the verbiage "up to a max of." For Example: "The Seller is to pay up to a max of $2000 towards the Buyer's closing costs." This will include all Home Warranties cost.

_____________* Copy of Buyer’s Pre-Approval letter or CURRENT/WITHIN 30 DAYS Proof of Funds with buyer's name on Cash offers.

_____________* Seller's Lead Based Paint (LBP) Disclosure even if the house was not build before 1978.

  (The Seller's Lead Based Paint Disclosure form must be used, make sure to have initialed and signed. Please add REO id # from HomePath.)

_____________* Owner Occupant Certification(not used for investors)

_______________* Corporation documents for corporate buyers.

_______________* All pages are signed and initialed accordingly

UPON ACCEPTANCE ALL ITEMS NOTED IN THE SPECIAL STIPULATIONS PAGE OF THE NCAR CONTRACT IS YOUR RESPONSIBILITY TO VERIFY THAT THEY ARE INCORPORATED INTO THE SELLER'S REAL ESTATE PURCHASE ADDENDUM 

All forms necessary are downloadable off of this webpage.  Please make sure to have all forms complete, signed and initialed before submitting.  These forms should be initially uploaded when making an offer on www.HomePath.com,

ONCE YOUR OFFER HAS BEEN VERBALLY ACCEPTED AND YOU HAVE RECEIVED A CLEAR POPULATED ADDENDUM, PLEASE CREATE ONE PDF FILE WITH ALL REQUIRED DOCUMENTS AND EMAIL TO CHARLOTTEREO@GMAIL.COM. IF YOU ARE UNABLE TO CREATE ONE PDF FILE WITH ALL DOCUMENTS OR THE FILE IS TOO BIG TO EMAIL, THEN PLEASE FAX ALL REQUIRED DOCUMENTS TO OUR EFAX NUMBER, 888-677-8873 AND THIS WILL COME TO US IN ONE MANAGEABLE PDF FILE. BY SENDING THE COMPLETE DOCUMENTATION IN ONE FILE, WE CAN MORE EFFECTIVELY SUBMIT WITHOUT A POSSIBILITY OF REJECTION FROM THE SELLER.

THE SELLER NOW accepts digital signatures.

**It is recommended to use a real estate attorney that is well versed in closing REO properties in order to complete transaction in a timely manner.

Go to www.Homepath.com, search property listing, click "Make Offer" and complete offer submission fields. After online submission, email COMPLETE offer package to Will Owens at CharlotteREO@gmail.com or fax it to 888-677-8873.

TIME LIMIT OF THE OFFER:  PLEASE ALLOW 3 DAYS (IF YOUR OFFER IS SUBMITTED DURING THE WEEKEND, PLEASE ALLOW 5 DAYS)

We have provided this information in order to make sure the process is as smooth and successful as possible for you. If you have any questions regarding any above listed instruction, please feel free to email us at charlottereo@gmail.com. We look forward to a successful transaction with you.

South Charlotte Properties