Foreclosure Rules for Sedona AZ Homes
Posted By: Barbara Baker
In: Sedona Real Estate
Date: Sun, Dec 5th 2010 6:26 pm
Are there rules for submitting an offer on a Sedona Foreclosures in the Sedona Real Estate Market? Well, there aren't set rules - however, there is some good general rules that any consumer looking to buy a Foreclosures in Sedona should know.
Our time frames mean nothing to the bank. Don't expect a response quickly The banks figure that when they finally respond to your offer, you will either proceed (time for acceptance stipulations be damned) or we’ll go away. They don’t much care which one you do.
Now the back and forth of negotiating happens. Expect this negotiating to be verbals on the bank’s part. Your agent will get You will probably get emails or unsigned counter offers or phone calls from the list agent until you reach an agreement – then you’ll get the whole thing in writing in the form of the dreaded bank addendum. Understand that you do not have an agreement until both the Buyers and the Sellers have all signed the addendum. Until then the bank can still pull the rug out from under the deal, so be focused about getting everybody to sign it.
The bank will then respond with their OWN addendum. It will change everything you have initially signed. EVERYTHINGl Once you get the bank’s addendum, READ IT. Some of them get grabby at the Buyer’s earnest money, some of them impose per diem penalties for delay in closing (no matter whose fault the delay is), some of them are just plain ludicrous.
IMPORTANT THINGS TO UNDERSTAND ABOUT THE BANK’S PROCESS.
- The whole thing is totally unemotional on the bank and asset manager’s part. It’s business - pure dollars and cents. They can’t care that this was your childhood home, they can’t care that you love the house more than anything you’ve ever seen, they can’t care that this is your dream home. Show ‘em the money.
- The actual bank might never see your offer. The list agent uploads the pertinent info into the asset manager’s screen. The only thing that this asset manager sees is price, COE date, the amount of Seller concessions (Seller paid closing costs, Homeowner’s warranty, etc.) and the bottom line - what will the bank get when it’s all done? This asset manager can accept or kill a deal without ever consulting the bank. BTW – if the Buyer gets mad and calls the bank and says “Why didn’t you respond to my offer?” and the banker says “What offer?” it could mean that it was never presented, but it probably means that it died at the asset manager.
- Cash versus financing isn’t an issue.
- You will not get an asset manager or bank officer’s signature or a “REJECTED” or much of anything at all in response to your offer until and unless it is accepted. Acceptance is evidenced by the appearance of the Seller’s Addendum.
- If you end up in a competing offer situation and get a request for your Buyer’s “highest and best” it’s time to get serious. No more caginess, no more holding back. Get your Buyers to put on paper the highest price that they can stomach. The asset manager will choose which offer they want and either you win or you’re dead - Game Over.
- If your Buyers blew it at the highest and best stage they can still hang around as back-up. It’s the same story, though – you will not get a signature that puts you into iron-clad first back-up position. Hang and hope, that‘s what I say.
Title and escrow companies. Oh, what a bone of contention this is! Very simply, since the big banks are doing so many escrows they worked out a deal with their favorite title company for a volume discount. They used to like to insist that you use their title company or no deal. OK - cool, except that that’s a violation of RESPA and Fair Trade and Arizona State law. So now they say that they will pay the title company fees if you use their favorite. You are welcome to use any title company that you want, but in that case you the Buyer will usually pay all title fees, both sides. So either pays the fees (which they won’t want to do) or you work with the bank’s choice. Pick your battles – this is one that (in my opinion) is not worth the fight.
For all your buying needs, email me, facebook me, go to my website, or give a call at 928-301-0669.