Naples Real Estate - Placing an Offer on a REO Bank Owned Foreclosure Property for Sale in Naples, FL
What is the procedure for placing an offer on a bank owned REO foreclosure?
When purchasing an REO buyers are required to put forth an offer on an AS-IS contract. Contact us and I can send one to you for your review.
This contract sets the terms of the offer. However, once the offer is submitted the seller will NOT immediately sign. If the seller accepts, the seller will put these same terms on one of their contracts. This new contract is referred to as a ‘Purchase Addendum’. If the seller accepts the terms, the purchase addendum will be forwarded to you. You will be required to sign the purchase addendum and get back within 24 hours. Once you sign this, the listing agent will mark the property as ‘pending’.
Once accepted, you will have an inspection period. If something unexpected arises you may cancel the contract or request concessions. The seller intends to sell the property ‘As Is’ so they are generally not willing to make concessions on defects that were obvious at time of contract.
Typically, most offer packages include/require:
As-Is Contract (explained above)
If financing the purchase, a prequalification letter from your lending institution stating approval for at least the amount of the loan (may state approval for more)
If cash offer, a proof of funds. This can be in the form of a banking statement, or most sellers will even accept a printed screenshot of your online account summary where sum of account balances exceed offer amount
Some offers will require a buyer information sheet, which simply consists of buyers and buyer's agent (me) contact information
Some offers will require a buyer to sign a multiple offer disclosure which simply states that if the seller receives multiple offers, they shall have sole and absolute discretion to accept or reject any offer they receive.
The offer contract and the successive documents required in a REO bank owned Florida real estate transaction can be confusing. I will guide you through this process with close attention to detail and professionalism.
Browse back to Frequently Asked Questions and Answers