Status Updates as of

Please see "Frequently Asked" questions at bottom of page!!

 REO

 
Agents, please, if you wish to know availability email me at: mkelly@realtour.com. It’s really the quickest way as we communicate with our banks exclusively via email!!   If we have multiple offers the AM (asset manager) will issue a “Highest and Best” unless we have a screaming cash buyer (they love cash!) in which case the AM may just grab that one. But a highest and best is the most likely scenario.

They will send back a worksheet with your original offer outlined, their counter-offer next to it in another column and the third column for you to “modify” your original. Hint-they sometimes are NOT looking for a bigger price. Could be shorter escrow, inspection period, bigger down payment, etc. So be creative.

 Once they “accept” your offer you’ll be given an 18 page “Sales Addendum” which you MUST sign and get back to us within 24 hours or your initial offer will be “rejected”. Don’t think you have a deal until that is signed! Your “effective acceptance” date will be when the sales addendum is issued. So don’t think sand-bagging the signing will give you more time! Nope! We will NOT report the property as a “continue to show” until I have the Sales Addendum in hand!! So until then? It is “fully,really available”!!

Here is a list of frequently asked questions;

Is a Countrywide Pre-Approval Letter required? YES - Countrywide Pre-approval letter is required before an offer can be submitted.  This is mandatory. If your buyer is using another lender, both pre-approval letters are required. Lender contact information must be complete and include an email.

When presenting an offer, is it necessary for Buyer's Agent Contact Information be to be complete? Yes, Buyer's agent must fill out all contact information on page 8 of Ca. purchase contract.

Is a Buyer's Agent's Agency Disclosure with the Seller required;  Yes, California Civil Code Section 2079.14(b) states, "The selling agent shall provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase, unless the selling agent previously provided the seller with a copy of the disclosure form. . . ." In other words, a dual agent is required to give the seller only one agency disclosure form (C.A.R. form AD).  However, when there are two agents (i.e., different brokers) involved in the transaction—one broker representing the buyer and  another broker representing the seller--then the buyer's agent must give the seller a second agency disclosure form that is signed by the buyer's agent and the seller prior to presenting the offer to the seller. In practice, if the buyer's agent is not present when the offer is presented to the seller, then the buyer's agent should provide the listing agent with a copy of the agency disclosure form signed by the buyer's agent, together with the offer, to be signed by the seller prior to presentation of the offer.

Inspections: In a Countrywide REO, how much time will my buyer have for inspections?  Expect 10 days for physical inspections;

Upon Countrywide's acceptance of an offer, a 16 page sales addendum will be presented to the buyer for acceptance and, when signed by all parties, will supercede the California Purchase contract. The inspection period will likely be reduced to 10 days with a passive inspection removal.  Be prepared. 

What is the Effective date or acceptance date?  The effective date is the day that Countrywide presents the sales addendum to the buyer for approval, but the contract is not ratified until the buyer receives signed copies back from the Seller, as stated in the following clause taken from the Countrywide Sales Addendum;" Effective Date: The date of Seller’s execution of this Addendum shall be the “Effective Date” of the Agreement,notwithstanding any prior understanding or agreement with respect to the financial terms set forth herein. TheAgreement shall be null and void if the Agreement signed by the Buyer is not actually received by the Seller before the Seller accepts a competing offer, or gives verbal or written notice of revocation to the Buyer, the Buyer's agent or attorney, or the listing agent. The Agreement must be approved by the Seller's management, and it must be signed by all parties in order to be binding " However, it is important to note, the clock begins on the executed date. Upon receiving the Countrywide Sales addendum, the buyer has 24 hours to return it, or the offer will be rejected.

Will Countrywide counter my offer?  If multiple offers are presented, Countrywide will counter with a "Highest and Best" Be prepared to submit any changes to your offer within 24 hours or your offer will be rejected.  

Can I open Escrow with my preferred title company? No. Countrywide REOs are pre-opened with First American Title when title is transferred. Because they are requiring their title company, California RESPA laws require that they pay for Title insurance and escrow fees. 

How much time will I have to respond to a counter offer or offer acceptance? 24 hours. All counter offers and Sales Addendum must be turned in within 24 hours or your offer will be rejected.

Is this property really available? The property status is as per the MLS. To further clarify, we have added a “Status Report” updated as the information changes to all of our listings!!  In this REO market, expect competition. Get all your ducks in a row before presenting your offer, and be prepared for a highest and best counter offer.

Mike Kelly and Allison Norman (707-799-3617)

Keller Williams Realty

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