I was looking to purchase a forclosed REO property from a bank. What well they actully have me do before they sign me up for a contract??
You need to go through the listing agent of the REO and they will tell you what is needed.
Like POF (proof of funds), copy of EMD (earnest money deposit), and then you sign all the crap load of paper work.
Or if you have an agent your working with they will contact the listing agent.
Thats pretty much it…then wait to see if they counter, accept or you dont get a reply.
They are going to have you submit an offer on a state specific association of realtors offer form.
Either you will choose a buyers agent for yourself or the Listing Agent will set your offer up for you on the offer contract according to the terms you want.
The agent will email the contract to you for review and you will sign it or if you have changes you want to make then you tell the agent and they will make changes and have it sent back to you. If all is ok, then you sign the contract, send it back to the agent and they will submit your offer to the bank.
In a couple days the agent will return back to you with a rejection or counter offer from the bank.
If they counter, then you can raise the offer or keep it the same until you and the bank come to an agreeable price.
If they reject then you have to raise your offer or wait until/if the bank reduces the price of the property later and resubmit the same offer again to see if they change their mind.
If you structure the deal as Eric has taught, then you will have 7-10 days to market this property to your buyers list before you have to put up your earnest money. If it’s a good deal, then you should have gotten a buyer and earnest money before the inspection period expires.
Hope they dont ask for proof of funds or anything. cause im doing this with $0.00 and EMD is gona be from the investors pocket. Will this still work??
THey are going to ask for POF…no other way around it that I know.
Ive been using Coastal Funding for that and it has seem to work so far.
Or, know someone who has cash in the bank that shows that you can pay for the entire purchase of the house???
If they do then just give the agent a copy of their bank statement as POF.
Theres gotta be another way around it. cause ppl wholesale to get money to investing in other real estate
Jeremy it’s very easy to get a POF letter. It’s almost a non-issue! Every now and then you will get trouble from a realtor who won’t understand how to write it up on contract. They are thinking that you are getting a conventional loan and they want to do a financing exhibit on the contract. Anytime you get this, just tell them to write it up as Hard Money and they usually in my experience know what to do from there.
Like Bashir said jeremy POF are easy to come by.
Like coastal funding…go to their website and on the left hand side you will see download POF or something…then just fill out the info and you will be emailed a POF in minutes.
(insert easy button)
Here is coastal funding’s POF. All you need to do is type in the info and print it out. Haven’t tried it yet but I’ve heard that others have used it.
Ive used them…so far it has worked.
WIll post the minute the bank says no cuz then I will need help! :flush