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Looking for an East End, Long Island Foreclosure / REO Home?

August 9th, 2009 category: Buyers, East End LI Foreclosures

If you are a potential buyer of a North fork / Hamptons / East End of Long Island foreclosure (REO) home, there are some nuances that differ from a traditional transaction that might be worth reviewing BEFORE you set out to locate a property:

Offers have required paperwork. Under these requirements, those that are sent in absent ANY of the following may be returned, delaying receipt of your offer by the bank Representatives:

1. Have with you a preapproval letter from your bank. Because “preapproval” letters vary somewhat, make sure that your own references in some way that your credit/income has been reviewed, and found satisfactory. Absent this information, there is no way for an offer to demonstrate the assurance that you’ve done more than offer verbal numbers to a loan officer, without having provided them with what they need for reasonable certainty that you do, indeed, qualify.

2. Have with you “proof of funds.” This can be accomplished by providing recent bank statements that verify that available to you are funds for the planned down payment, or enough cash on hand for a cash purchase offer.

3. Have your offer prepared on a state-approved offer form. As this is required by many banks, anything outside of the required forms are a gamble- timing is everything on offers, and absent one requirement could potentially delay the review of your offer. The Long Island Board of Realtors/MLSLI offers a standard form called the Sales Agreement form.

4. Have a check ready, in order to provide a copy to the listing company. A copy is sent in with your offer; your real estate agent/Realtor holds the original until your offer is accepted by the bank. Instructions as to how much will be provided by the listing company.

5. If you have a Real Estate buyer’s agent helping you, have your Realtor/real estate agent explain, and fill out, the NYDOS standard agency disclosure form, to be submitted with the offer. The MLSLI listing will provide those agency representations that are offering compensation to your Realtor.

PART TWO: THE AS IS ADDENDUM

If your offer to purchase is being considered by the bank, they will forward to the listing company their “as is” addendum, explaining exactly what the expectations are with respect to their “as is” property. This is not a negotiable form; this is a form in which your lawyer will provide full explanation, in order to establish if an “as is” property is acceptable to you.

If it is not acceptable, your offer is canceled; if it is acceptable, the process then moves into the contract stage.

THE CONTRACT STAGE

The majority of bank transactions will be using a contract that differs somewhat from the contracts generated in NY; your lawyer will receive this contract for your review. Because the seller of a bank owned property is not a “local” entity, expect to review their contract, as opposed to the standard NYS contract forms.

Having a lawyer that is well versed with REO properties is essential in both the “as is” review, and the contract review, as delays/issues may jeopardize your purchase.

Plan on following the time frame for the processing of your offer TO THE LETTER. Any variance from what the seller expects may create a “canceled” offer. Once canceled, the next offer in line is provided the “as is” addendum, and the process begins anew.

Knowing what to expect, and how to proceed, is essential to a smooth transaction.

Imagine a seller with hundreds of files on their desk, working through each- those that proceed smoothly have an increased chance of closing; those that slow down the process are in jeopardy of not closing at all.

It’s nothing personal; the objective of the seller is to work through each REO offer/property with efficiency and speed.

Know that the bank representative is the decision maker; listing agents have no impact (short of their own responsibility to provide offers that are submitted in a complete package). If you’re aware of how to do it, and what to provide, you increase your odds of a successful closing, provided your offered amount is in line with what the bank is seeking. The listing agent is your contact person; they’ll provide any information that you or your Realtor / lawyer seek. BE AWARE: due to the volume of interest in bank owned properties, EMAIL is often the method used for communication.

Depending on the bank, if there are enough acceptable offers on the table, they may well halt the submission of additional offers and showings. Get yours in first!

Your Realtor and your lawyer will help you through the process; they will be unable, without your cooperation, to provide the best possible service/outcome.

**THIS IS NOT BEING OFFERED AS “LEGAL ADVICE.” This offering is based on a few recent experiences, in the hope of offering insight to those buyers (and their Realtors) looking for an east end foreclosure. CurrentREO offerings are a new game, due to the volume being encountered by banks and their employees- understanding the expectations puts you a step ahead!

To search available homes for sale on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.

This entry was posted on Sunday, August 9th, 2009 at 8:02 pm and is filed under Buyers, East End LI Foreclosures. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “Looking for an East End, Long Island Foreclosure / REO Home?”

Jean Says:
August 11th, 2009 at 2:55 am
It’s the time of foreclosures and investments. We could only hope we are in the most safer side. Thanks for sharing this. By the way, I know a great Kentucky home that might interest you too. Thanks.
laurie mindnich Says:
August 11th, 2009 at 7:25 pm
Jean, we have friends that bought land in Kentucky, and can’t wait to build and retire there.
JAMES GOSSETTE Says:
September 10th, 2009 at 5:35 pm
REOs are hitting US markets now, that results to continue increasing of people who want to learn the REAL estate Industry and be a broker/Realtor.
You info’s help a lot to those who don’t have enough knowledge in purchasing an REO homes.
Thanks for that.

If you are looking for a place to rest in Pasco County, Fl, then you shouldn’t miss this PASCO REOs Properties
laurie mindnich Says:
November 1st, 2009 at 12:06 pm
Hi, James- I’ll check out the link- thanks!