1Will all liens be taken care of prior to closing?
Yes, the seller can’t close unless the title is clear. The closing company will make sure all necessary liens (trash, sewer, HOA) are cleared prior to closing. In rare instances, the home will be taken off the market if unknown liens are discovered during marketing.
2How long does it take to close on an REO property?
Since there are no special approvals needed to close, unlike those existing with short sales, REO closings have the same timeline as traditional sales.
3Why does the MLS have $0 noted for the earnest money deposit?
Often REO sellers do not have a set amount they require for earnest money deposit. Most prefer a minimum of $1,000, but that amount may be countered depending on the offer. Other sellers, such as Fannie Mae, have multiple amounts required. Fannie Mae will require $500 if the buyer is using public funds for down payment assistance,10% if the buyer is paying cash, and for all other types of financing the earnest money deposit is negotiable.
4Do you hold offers? Is there a deadline to submit offers?
All offers are presented as soon as practical and offers are not held waiting for multiple offers. The MLS comments will state if the seller requires a minimum listing time period prior to negotiating offer(s). There are not any offer submission deadlines unless the property is in a multiple offer situation. If there are multiple offers, most REO sellers will set a deadline for all offers, including highest and best, to be submitted. This deadline is noted in the MLS.
5 Will the seller complete repairs?
REO homes are sold in their current as-is condition even though they are often repaired prior to being marketed. Sometimes sellers will negotiate appraisal required repairs, but buyers need to assume that no repairs will be completed. Buyers’ financing type must be considered when viewing REO properties including the lender’s ability to fund in the home's current state.
6Are utilities on?
Utilities are turned on for most properties and remain on until the close of escrow, unless the property condition does not allow for utilities to be safely turned on. Some sellers do not turn utilities on.
7Will the seller provide the HOA resale package?
As required by Nevada law, the seller will order and provide the HOA resale package once the offer has been accepted. The buyer will have 5 days to review and accept the contents of the package.
8Does the seller ever allow pre-possession prior to closing?
Pre-possession is not allowed. It is important to ensure the lender is on track to close by the close of escrow date noted in the contract. Communication is key and our office will assist in any way possible to ensure on time closings.