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I recently attended a National Real Estate Institute Negotiating Bank Owned Properties seminar and thought that I would condense down the highlights for those of you who are writing REO offers.

1. Keep it simple–no novel writing, these offers are sent electronically and are usually reduced down to the net.

2. Try to have close of escrow on or before the 25th of the month. Takes about 3 days for bank wires. Banks are assessed their handling charges on the first and if they have not received the check before the EOM then there is an additional charge for them.

3. Try to limit contingencies and most banks will not accept  a sale of home contingency.

4. Do not call listing agent and ask “what will it take“, listing agents have no idea what the asset manager will accept.

5.Most banks will not allow an assigner.

6. Most banks will not pay a commission on an agent as principle buyer representing himself.

7. Banks prefer preapproval from banks rather than mortgage brokers.

8. Sellers are not required to pay for title so if buyer wants to pay all costs then they can dictate title company.

9. Banks will bring HOA current,  just make sure to address in offer.

10.  Even if you come in at full list, expect a counter. Council your buyer to expect counter but still offer highest and best to eliminate competition.

11. Always keep in the game and recounter.

12. When there are multiple offers and you receive a Highest and Best request from the bank-it is usually a 24 hour timeframe, but always check with the listing agent.

13.Asset managers are not emotionally invested, they usually have between 400 and 500 files to get off their desks.

14. Timelines vary on the response time for offers anywhere from 24 hours to two weeks.

15. Bank’s position is that they are responsible for only known conditions. Be sure to read the “AS IS” addendum carefully, particularly a clause that states if repairs exceed 5% of value, property reverts to “as is”.

16. If you extend COE, make sure you also extend the financial contingency, otherwise EMD goes hard.

17.  Try to limit Due Diligence to 3 days.

18. If you can document with a licensed inspector and send the inspection report listing the repairs to the listing agent, your chances are fairly good that they will be taken care of.

19. Most lenders will not allow credits for repairs at close of escrow.

20. Most banks will not accept bank wired earnest deposit, they will ask for certified funds.

21. Make sure that everything that you want the seller to pay for has the exact dollar amount including the appraisal. Offers are accepted on the “net”.

I hope these simple tips help you get more of your REO offers accepted  and wishing you  much success in 2009!!