The following are the guidelines for submitting a contract on foreclosure properties that I currently have listed: EARNEST MONEY DEPOSIT The earnest money deposit must be made out to William E. Wood & Associates, with no exception. There is a minimum of $500 required, however, the seller may request a higher earnest deposit money amount in negotiation. INSPECTIONS It is the seller’s intent to sell this property “as is”. In some cases, they will consider an escrow for repairs if they are not a health hazard. This needs to be negotiated up front. The seller may allow property inspection contingencies. When a contingency is allowed, it is usually no longer than a 7 day inspection period. Inspection contingencies are only for the purpose of determining if the buyer wishes to pursue the purchase. Keep in mind that the seller may offer no repairs to be made/funded by the seller based on the results of the inspection. If the buyer wants the option to withdraw the contract based on the results of the inspection, this is a contingency. Please note this in the contract. If the buyer intends to pursue the purchase of the property, regardless of the results of the inspection, then the contract is considered “non-contingent” and may be written as such. CONTRACT TERMS ALL terms must be negotiated upfront as a specific dollar amount, such as closing cost assistance and/or repairs. ALL buyers must provide a pre-approval letter/proof of funds. For buyers purchasing with financing, the only contingencies allowed are final underwriting, appraisal and title. For all Bank of America and VA REO properties, a pre approval letter must be issued by Bank of America. Contact: Cola Galvin (757)718-6424 Offers will be rejected because of incomplete or unsatisfactory approval letters. Please note that the “extend by___” days verbiage that is standard in the REIN MLS Contract will not apply. All parties should intend to close on or before the contract closing date. A per diem amount is charged to the buyer if the closing extends beyond the closing date stipulated and is not caused by the seller. Please allow at least 30 days from acceptance to close on an FHA or VA contract. Conventional, Cash and Hard Money Lenders are acceptable. Proof of funds are required for cash buyers. DISCLOSURES As foreclosures, sellers are exempt from disclosures. Lead Based Paint, AICUZ and Mold Disclosures will be included with the seller’s addendums, which are issued after the terms of the contract are negotiated. Once the terms of the contract are negotiated, you will receive all additional disclosures via email. It is imperative that you obtain the buyer’s signatures on these disclosures as soon as possible. Once signed/initialed, please fax to (757)217-4639. WALK THROUGH INSPECTIONS Properties are sold strictly “as is”. In some cases the seller may not provide utilities for walk through inspections. Please contact Dennis Register at (757)287-0598 for further information on specific properties. HOA/POA/Condominium Documents The seller and the listing agent do not have a copy of these documents. It is up to the buyer/buyer's agent to obtain these documents within the allowed amount of time. CLOSING AGENTS Virginia law allows the buyer to choose their own settlement agent. It is recommended to use the same settlement agent as the seller, if at all possible, as their may be additional discounts, and they are familiar with REO properties and are able to expedite the process . Due to the seller’s side of processing foreclosure title and/or removal of liens, cash purchases should expect at least 2 weeks to close. As with all REO properties, there can be title issues that are from previous owners. The seller has no knowledge of these, nor does the seller have previous title insurance information. If the buyer chooses to use their own title agent, all pre-existing title issues are the responsibility of the buyer. If the buyer chooses to use the seller’s closing agent, the seller will provide title insurance at no expense to the buyer. In addition, the seller does not have a survey or plat of this property as the property was acquired by the seller through foreclosure. |