OfflineI have just made 23 offers on properties, some of which are REOs. I have to meet with the realtor tomorrow and just want to make sure I have my ducks in a row.
I need a POF to go with the offer. So I can just go to coastal funding and get that.. no problem.. My question is this. If my offer is not accepted, do I owe coastal funding anything for using their POF letter? Another question is if it IS accepted, I can use my inspection period to find a buyer. If I can't find a buyer within the inspection period, my earnest money check will be returned. Am I correct on this? This will be my first REO (if accepted). I'm pretty sure I"m right, but just reassure me... somebody!!
She will have the offers ready for me to sign. It is okay to use a copy of the same check for each offer, isn't it? She won't expect me to have a different check for each one I don't think.
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There is no fee for using the POF letter. And further, you are in no way obligated to ever use these funds. Letters are free.
If you do not find a buyer during the inpection period, you can say the inspection was unsatisfactory and you should get your EM back. However, be careful and read the contract you are signing. Some banks, like BOA, have caught on and the contract says they have the right to see your property inspection (and likely you didn't really get one) and that they have the right to repair the issue that you object to.
Read the contract (or have your attorney advise).
And, yes, you can use the copies of one EM check for multiple offers. It is not deposited until the contract is agreed upon by both parties.
Remember when you assign the contract that your EM will not be returned to you by the buyer - so build that into your assignment fee.
Good luck!
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Gena pretty much covered it all
I will only add that if you're making offers on REO's that you are aware that you will need to have funds to close; i.e. a double close? because you will not be able to assign... so you need to have your transactional funding ready to go as well.
great action from your part!!! good luck!
Valerie
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Hi cab someone tell me how to obtain a proof of funds letter to present with your offer if you are planning to do an assignment to a cash buyer.. Thank you
This just popped into my head as I was reading this thread...Is the EM subtracted from the purchase price at closing, or is it in addition to the purchase price?
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I'm just a little nervous...REOs scare me for some reason. I've already got my POF letters ready to go!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
I don't need that when making the offer? only when it is accepted and coastal can provide the funds. I will be able to take care of that within my inspection period. I believe the funds have to be there 24 hours before closing or something like that?
thanks!
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
It will be subtracted from the purchase price.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.