Writing REO offers banks will accept

Negotiating with banks can be very troublesome for most agents.  Writing an offer on an REO property is not like writing an offer to a traditional seller.  Knowing the ins and outs of REO goes a long way towards facilitating a sale, especially in our current market where multiple offers are the norm.  Writing the offer the way the seller wants to see the first time not only saves time but in a multiple offer situation often times ensures the deal will be accepted.  I have been on the receiving end of hundreds of offers from multiple agents. Well organized complete offers always got more of my attention, and more importantly more attention from the asset manager. Here are some guaranteed techniques you should use when writing offers on REO properties. 
 
·         The biggest reason offers are delayed from being submitted are the POF, (proof of funds) or Prequalification letters. Proof of funds or prequalification letters must be dated within 30 days for the full purchase amount, have the same name as stated on the contract, and be in English and in USD!
·         $1,000 minimum EMD, (or escrow dollars) the more the EMD the more the asset manager will want to approve!
·         Close date: no more than 21 days cash/30 days conventional/ 45 days VA&FHA, the quicker the close date the more the asset manager will want to approve! Often times asset managers bonuses are based on monthly production, so they will always fight to keep closings from going into another month.
·         Include FICO score with any VA or FHA offers, this gives more transparency to the asset manager and hopefully strengthens your offer. 
·         Do not specify time for acceptance (they will respond as quickly as they can regardless of acceptance timeframe). Feel free to leave this blank. 
·         Keep inspections between 5-7 days, the fewer inspection days the more the asset manager will want to approve!
·         No special clauses on repairs, appliances, or other special requests. “As Is”!
·         Include Articles of Incorporation if contract is in company name.
·         Never make contracts assignable.
 
I have consulted for some of the nations leading REO agents.  I have also been a party to over 500 REO specific transactons.  If you have any additional questions or want to learn more about REO please feel free to contact me directly Jeremy.sposato@jroberts.com

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