Q: What is a "bank-owned
property"?
A: When a borrower
with a mortgage from a bank or mortgage lender can't meet the payments,
the lender forecloses on the property and takes ownership of the
property. Then the lender lists it with a listing (real estate) agent
and sells it at market value as quickly as possible.
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Q: Who can buy
a Bank-owned property?
A: Anyone! If you have
the cash or can qualify for a mortgage, you can buy a Bank-owned
property.
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Q: Can I buy
a Bank-owned property as an investment?
A: Yes, Bank-owned
properties listed on the reoSource web site are available to all buyers, including
investors.
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Q: How can I
find out what Bank-owned properties are for sale?
A: Right here! The
Bank-owned properties available on the reoSource web site can be viewed at www.reosource.com.
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Q: How do I
get more information about these properties that are for
sale?
A: Each Bank-owned
property listed on the reoSource web site will have a listing agent displayed
with the property. To obtain
the name and phone number of the listing agent, please select the
“Contact the Listing Agent” link next to the agent’s name on the
listing page and complete the information form on the next page. If
you are a potential buyer: please contact the appropriate listing
agent for additional information about a specific property, including
information about arranging a personal viewing of the property. If
you are a real estate agent: please contact the listing agent
for information about a specific property, sales contracts, and commissions.
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Q: What is the
condition of Bank-owned properties listed on the reoSource web site?
A: All Bank-owned properties
offered on the reoSource web site are sold "as-is". The Lender,
the listing agent, and the reoSource web site do not make any warranty or
representation, expressed or implied, regarding properties for sale
on the web site. The buyer is expected to perform an inspection with
a licensed contractor at the buyer's expense.
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Q: How do I
buy a Bank-owned property?
A: For a potential
buyer: start by finding a licensed real estate agent. Your real
estate agent must submit an electronic offer via the reoSource web site for
you. To find an agent, please visit the reoSource web site's Agent Locator page.
For a real estate agent: in order to place an offer on bank-owned
properties displayed on the reoSource web site, you must register with reoSource.
If you are not registered and are interested in registering, please
visit our Agent Registration page.
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Q: What do I
need to do before submitting an offer??
A: Before submitting
an offer, the real estate agent should have a completed and signed
real estate purchase and sales contract and the earnest money deposit
from the buyer. We also recommend that the buyer and agent should
perform a thorough investigation of the subject property, and investigate
financing for the buyer's potential purchase.
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Q: Can you describe the offer process
used to sell properties displayed on the reoSource web site?
A: Bank-owned properties listed on the reoSource web site are
being sold through a competitive offer process in which offers
are submitted electronically to the bank for evaluation and
review. The bank will submit a reply (counter-offers
and/or accept/reject notifications) back to the listing agent
who will communicate the response to the prospective buyer. Please note that banks frequently receive
multiple offers on the same property, which may require additional
time to prepare and send a response. >ReoSource
does not guarantee the timely delivery of this notification;
ultimately, it is the buyer's and the agent's responsibility
to check the status of their offer with the listing agent.
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Q: After I
submit an offer, how is it evaluated??
A: The lender primarily
evaluates offers based on the net funds received by the lender after
deducting the selling agent's commission. In general, the lender
will accept the offer with the highest net amount. Notwithstanding,
the lender reserves the right to accept, reject, or counter any submitted
offers, even the highest offer.
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Q: If my offer
is accepted, then what happens?
A: The party submitting
the accepted offer is required to send a completed and signed real
estate purchase and sales contract and the earnest money deposit
to the listing agent within the time frame that stated in the lender's
Terms and Conditions appearing on each property listed on the reoSource web site.
The party submitting the accepted offer will receive information
on how to complete the transaction and instructions to help the buyer
through the paperwork process.
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Q: Can I reduce
or cancel my offer once it has been submitted?
A: No, the buyer and
the agent cannot reduce or cancel the offer once it has been submitted.
To ensure that the lender and listing agent are able to successfully
complete the sales transactions, reoSource only accepts serious
offers. The buyer and the agent need to review the offer carefully
before submitting it.
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Q: How can
I get a loan to buy a Bank-owned property?
A: The lender doesn't
make loans directly for any properties listed on the reoSource web site. In
order to ensure that your purchase will close, we encourage potential
buyers to be pre-qualified for the amount of an offer for a property.
We also recommend that potential buyers investigate financing before
submitting an offer, since failure to obtain financing will result
in the cancellation of the offer. The real estate agent should be
able to get financing information for his/her buyer.
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Q: Is there
anything else I should know about Bank-owned properties?
A: We encourage every
homebuyer and homeowner to be a wise consumer and every real estate
agent to be a wise realtor, so be sure to read the lender’s "Terms
and Conditions" carefully before placing an offer on properties
appearing on the reoSource web site.
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