This page is for Professional Real Estate Agents Only IMPORTANT!
Your offer we will need to include the following:
- Proof of down payment.
- FICO scores.
- Letter of Approval/Pre-Approval.
o Buyers' must be preapproved with stated lender. We have to be assured that the buyer is able to qualify. We only have one chance to close escrow, and save the sellers from a foreclosure, and we are doing our due diligence to the seller by getting a second opinion on the buyer's ability to close. - A copy of the deposit check.
- Proof of funds if it’s an “All cash” offer.
- If you are submitting a VA offer a copy of the veterans Certificate of Eligibility from the VA needs to be attached to the offer.
- If you are writing an FHA offer on a condo the BUYER is to provide SELLER written confirmation that the complex is FHA approved.
I do not open escrow until I receive lender(s) approval of the short sale which could take 2-4 months. The escrow time line will start the day we receive lender approval. Your buyers will then have the time agreed upon in the contract to remove ALL contingencies. Your buyer CANNOT be related to the seller in any way. If your buyer should have the same last name as the seller we will need a sworn affidavit that there is no relationship between the two. There will be a Per Diem penalty written into the counter offer pertaining to closing late because of the buyer. Any questions regarding the following; and ALL offers MUST be e-mailed to joe@joehoms.comWhat I will do if your offer is accepted. - I will make sure that your client gets all of the required disclosures, including a natural Hazard report, HOA info, and termite report after lender(s) acceptance.
- I cannot respond to a weekly update on this file, but can periodically if you send an email … PLEASE DO NOT CALL FOR AN UPDATE!
- The commission will be subject to lender approval and split 50/50.
California Offer & Counter Offer Information The following information will help answer some questions and help the short sale offer process go smoother.
I will confirm receipt of your offer or counter offer via e-mail response; please don't call before you check your e-mail to see if the confirmation is there. If you don't receive the confirming e-mail from me that your offer was received you can assume we DID NOT receive it and you should RE-SEND IT.
**I present ALL offers to the seller and they make the choice of which offer to send to the bank.
**My protocol is to get one offer in front of the lender and 2 or 3 back up offers unless the lender(s) request that all offers be presented. After I have sent an offer to the bank, which includes having a sufficient number of back-up offers I change the MLS status to “Back up”. I DO NOT COLLECT OFFERS FOR SUBMISSION TO THE LENDER(S)!
**Please understand that I am trying to protect my seller from foreclosure and I will counter your offer as per all the terms and conditions below.
**The seller will NOT pay for buyer's repairs. Buyer MUST have a home warranty paid for by buyer.
You MUST use CAR forms RPA-CA & SSA; and include the following where indicated. If your client is an investor and you’re writing an offer on a short sale, you must use CAR form NODPA.
Page 1 of the RPA-CA - Paragraph 1-D: Escrow MUST be 30 days or less.
- Paragraph 2-A: Earnest Money Deposit must be a minimum $5,000. The higher the earnest money the greater the chance of your offer being selected.
- Paragraph 2-I: Loan Contingency Removal – 10 Days.
- Paragraph 2-J: Appraisal Contingency Removal – 10 Days.
- Paragraph 3-B: Possession to be Close of Escrow plus 3 days at 9 P.M, unless property is vacant.
Page 2 of the RPA-CA - Paragraph 4-A (1): Seller will pay for the report, Buyer to pay for any repairs not paid for by the bank. Check with your buyer’s lender to see if they can waive the pest inspection and repair requirement. If not, submit and I will attempt to get the bank to pay for it, but I cannot promise anything. The buyer may need to come in with additional funds to pay for this item.
- Paragraph 4-B (3): Seller will pay for The Natural Hazard Disclosure Report through “Seller’s Choice”.
- Paragraph 4-C (1): Shall be checked Seller.
- Paragraph 4-C (2): Shall be checked Buyer.
- Paragraph 4-D (1): Check both boxes and insert “Each to Pay Their Own”; Escrow Company to be “Sellers Choice”.
- Paragraph 4-D (2): Seller shall pay owners title insurance policy through “Sellers Choice” of Insurance Company.
- Paragraph 4-E (1), (2), (3), (4) & (5): Shall be checked Seller (if applicable). However, remember that as I will attempt to get the bank to pay for these fees, they may not agree. In that case the buyer will be responsible for these charges.
Page 3 of the RPA-CA - Paragraph 8B (3): Shall read “Nothing Included” No personal property will be included in the purchase.
Page 4 of the RPA-CA - Paragraph 14-B (1): Buyers investigations contingency removal to be 10 Days.
- Paragraph 14-B (3): ALL contingencies to be removed within 10 business days from short sale approval.
- Paragraph 14-C (4): Shall remain 24 hours.
Page 5 of the RPA-CA - Paragraph 16 Liquidated Damages: Buyer to Initial.
- Paragraph 17-B Arbitration: Buyer to Initial.
Page 6 of the RPA-CA - Paragraph 25-C Statewide Buyer and Seller Advisory: To be checked.
- Paragraph 25-E Short Sale Addendum: To be checked.
Page 7 of the RPA-CA - Paragraph 27-C: “Wright Realty Partners, Inc, Broker” represents the Seller Only. Your Company represents the Buyer only.
Page 8 of the RPA-CA - Paragraph 31 Expiration of Offer: Do NOT place an expiration date as it will not apply.
Short Sale Addendum Page 1 of the SSA-CA - Paragraph A: The date on item “A” should be 30 days from the offer date.
- Paragraph B-1: Leave unchecked.
- Paragraph B-2: Leave unchecked.
Addendum Questions - Addendum Item #1 – Buyer education is important. Make sure they understand that Short Sales are a daily changing process and not under control of anyone but the banks.
- Addendum Item #2 – Insert your purchase price in blank area.
- Addendum Item #6 – Ask for closing costs. The banks are willing to pay (most of the time) 3% for owner occupants and 2% for investors. This money will be used to pay for the extra fees in the transaction.
- Addendum Item #7 - Buyer's earnest money is "at risk" after contingencies have been removed.
- Addendum Item #8 - The Per Diem penalty starts first day after the agreed upon closing date. The earnest money deposit will need to be increased by the per diem amount before the seller grants the escrow extension. The per diem increases the total amount due from the buyer. It does not increase the selling price or having any effect on the buyer's loan in any way. It is a penalty for closing late that can be used to buy more time with the lender granting the short sale.
I hope I have answered most of your questions. I look forward to working with the successful agent. |
