BANK SALES & REOs on Kauai
REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction.
Bank owned foreclosed properties, are opportunities for Buyers to purchase homes, condos, and land for great prices, but they have requirements for offers and concessions as well.
In a bank transaction, they run the show… for the most part the bank determines what will be included or not included. These properties are often sold “as is”, the inspection periods are short ~ often 5 to 7 days, the termite inspection, survey/staking and cleaning and seller cost items are generally not included and if the utilities are turned off you as the Buyer will have to turn them on if desired for the inspections.
Though it seems like a lot of things are not done by the “seller” they are minimal in terms of cost as compared with paying for a “regular” listing and having those items taken care of by the Sellers. Bank sales often have multiple offers and the most complete package of the items below moves your offer to the “head of the pack” for consideration.
If you decide to write an offer on this type of listing, the following will be REQUIRED for your offer to be considered.
· Pre-qualification letter: I can give you the names and contact information for loan officers and lenders in our area. My two favorites to work with are Lisa Ledesma at Wells Fargo and John DiSpirito at All Star Lending. If you offer on a Countrywide bank sale, you will need to be pre-qualified with Countrywide, though you do not have to use them for your loan, their letter will be required.
· Verification of Cash Funds: copy of bank statements or letter from your financial institution on letterhead will be required to submit an offer for a bank sale if you are making a cash offer and may also be required for verification of your down payment with a financed offer.
· Earnest Money: bank sale offers will require a Certified Check or Money Order, so you would need to write a check at the time of the offer. For earnest money, I recommend 10% of $5000.00, whichever is greater. The check will be deposited upon an accepted offer and opening of Escrow.
If you have any questions or would like additional information, please contact me directly.
Jamie Friedman (RA)
Prudential All Star Realty
direct (808) 634-2011
fax (808) 356-1342
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