PLEASE READ ALL INFORMATION BELOW!
WHEN SUBMITTING AN OFFER ON OUR FANNIE MAE PROPERTIES. FAILURE TO READ, MAY DELAY YOUR OFFER SUBMISSION AND FINALIZING CONTRACTS.
THE FOLLOWING INSTRUCTIONS ARE ALSO NECESSARY FOR INSURING NO ISSUES WILL OCCUR WITH INSPECTIONS AND/OR CLOSING PROCESS.
THANK YOU FOR YOUR COOPERATION!
Fannie Mae Offer Procedures for Selling Brokers
Dear Broker:
Thank you for your client’s interest in this Fannie Mae Property, please review this procedures form and email charlottereo@gmail.com if you have any questions. Thank you!
THE SELLER HAS INSTRUCTED THAT ALL OFFERS ON FANNIE MAE PROPERTIES WILL NEED TO BE SUBMITTED ONLINE AT: www.HomePath.com
COMPLETE INFORMATION ON OUR FANNIE MAE PROPERTIES. Our bank foreclosures sell, on average, in 90 days or less. They are priced competitively in the marketplace. It is not unusual to have more than one offer at the same time and you will be notified of a multiple offer situation. All offers must include the necessary seller forms/addendums located on the left hand column.
Please make sure your offer uploads include one file for the seller addendum which should include the necessary buyer signed forms, such as the Owner Occupant Certification and Lead Paint Addendum. One file should be the NC Offer To Purchase and should include all necessary supporting documents in this file, such as the copy of earnest money check(can be personal check for offer,) and the pre-qualification/pre-approval or proof of funds letter. Please include all supporting documents in the state OTP file. All files should be in a PDF format. There are limited uploads and all information will need to be submitted.
Additionally, all Fannie Mae properties must be on the market for 3 days before offers are considered and is open to owner occupied for the first 15 days. Once the "First Look" days have expired, all offers will be accepted (ie. investor, non-owner occupied, etc). You should verify what the current status of this property is first. To do so, please go to www.HomePath.com and search for the property of interest. It will be noted on the detail page if it is still in the "First Look" status and how many days are left. If you have a question, please email me at charlottereo@gmail.com.
PREQUALIFICATION
Before submitting an offer, if your buyer is financing the purchase, It is strongly encouraged that an offer includes proof of funds (if cash offer), or pre-approval (if financing) and is a requirement for seller's final acceptance. Your Buyer can obtain a pre-approval from Fannie Mae’s Approved HomePath Lender Eric Storm at Prospect Mortgage 803-517-8791 Eric.Storm@prospectmtg.com
Offers lacking this document will be considered incomplete and will be potentially REJECTED by the seller until received.
SELLER’S STANDARD ADDENDUM
All offers MUST include an up-to-date NCAR Offer to Purchase and Contract, as well as Fannie Mae's Sales Addendum.
EARNEST MONEY GUIDELINES
FINANCED SALE OFFERS
$500 - $1,000 – Homes priced under $100,000+
$1,000 - $3,000 – Homes priced $100,000 - $500,000
$5000 - Homes priced $500,000+
ALL-CASH OFFER
10% of Sale/Offer Price
* The above are general guidelines but seller may specify differently. Cash offers on $50,000 purchase price and below are expected 10% earnest money deposits.
Earnest money is non-refundable AFTER the 10 day inspection period. When submitting the offer you can include a COPY of a personal check. However, if the offer is accepted, ALL deposited Earnest Money checks must be in the form of certified funds and made out to THE BAILEY LAW GROUP. Their address is 6743 Fairview Rd., Suite D Charlotte, NC 28210. MAP
IN ORDER TO SUBMIT YOUR OFFER, YOU MUST HAVE THE STATED EARNEST MONEY IN YOUR HANDS, ACCORDING TO NCREC.
DISCLOSURE
The seller or 3rd party did not occupy the subject property and it is a foreclosed property in which is exempt from NC property disclosure statements. Therefore NO disclosure is provided. You DO have the right to a 10 day inspection.
PERSONAL PROPERTY
All properties are sold “as-is.” If personal property such as refrigerators, washer/dryers, etc. are present in the house after the house has been trashed-out and/or repaired, they will remain, however, Fannie Mae will not sign a Personal Property Exhibit nor warrant the existence of any such items nor their usability.
OFFER TIMELINE
Keep in mind, this property is owned by a bank. The Seller does not work on weekends or holidays, so any offers submitted on a weekend, or a holiday will be submitted the next business day. Typically offers are answered within a few hours during the week. However, the Seller can take up to 48 hours (2 business days to answer offers. If there are multiple offers, the answer time could take longer).
TERMITE INSPECTION
The Seller has not inspected the property for termites. It will be the Buyer’s responsibility to inspect the property for termites during the buyer’s inspection period to determine any active or prior infestations. The cost of that inspection will be the buyer’s responsibility. If the buyer’s lender requires buyer to have a clean termite letter dated 30 days or sooner from closing, the cost of that letter shall be the buyer’s.
CLOSING COST
ALL CLOSING COST NEGOTIATED WILL INCLUDE ANY HOME WARRANTIES. SELLER WILL NOT PAY FOR HOME WARRANTIES SEPARATE FROM NEGOTIATED CLOSING COST.
CONTINGENCIES
The seller will not accept an offer with any Contingency, other than Qualified Financing.
INSPECTIONS
All Fannie Mae properties are to be sold "AS IS," please include "Buyer to purchase AS IS in the NC OTP. Inspections can be done up to 10 days after verbal acceptance. Inspections are for “Informational Purposes Only.” Defects are only those items making the house unsafe or uninhabitable. The Seller only considers repairs if they are required by the lender, but the price of the repairs will be added to the sales price. Please make your offer accordingly!!
Additionally, "N/A" should be placed by the Due Diligence Fee under Section 1 and that this entire phrase be crossed out and initialed by the buyer. Also, in 1(j), please insert the following language: "10 day inspection period as provided in Real Estate Purchase Addendum". Section 1(i) may be crossed out and initialed by buyer.
UTILITIES
SCP-REO will disconnect utilities on the scheduled day of closing regardless of what time of day the sale is closed. It is your buyer’s responsibility to have any final walk-thru’s completed requiring utilities services and to have utilities transferred into their name by the original date of closing. If the closing is delayed because of buyer’s or buyer’s lender’s actions and utilities are disconnected, SCP-REO will have no responsibility to re-connect utilities. Please consider using a cooperative home inspector who will have servicers to perform small task such as turning on pilot lights in order to avoid inspection delays and/or charge a re-inspection fee. The utilities will be connected at our homes and it is the buyers responsibility to insure that items such as pilot lights are turned on, if deemed necessary to complete the inspection.
DE-WINTERIZING
If a property is winterized and buyer chooses to perform inspections on the property, buyer or their agent must notify Listing Agent and request de-winterizing 3 days prior to buyer’s inspection. We must order the de-winterization and it takes the contractors 72 hours to complete. It is advised that buyer's agent check the property prior to inspection date to insure all utilities and de-winterizing is sufficient for inspection. Seller will not be responsible for rescheduled inspection cost.
RE-KEYING FEE
This property has been keyed to a Master Key system. Fannie Mae requires that this house be re-keyed at least one day prior to closing and that the cost of that service be paid by the Purchaser and deducted at closing. The typical cost to re-key is $150. Your purchaser will note a charge on the closing statement to cover the cost of re-keying the property. Call our office for location of the keys. This fee will show up on the HUD under separate disbursements from the buyer and will not be considered as part of any closing cost paid by the seller.
REAL ESTATE ADDENDUM
The Real Estate Addendum overrides the contract and any special stipulations in the contract. Please Read It Carefully!
You must use the downloadable Addendum when submitting offers. Once the offer is accepted, you will be sent a populated Addendum for your buyer to sign.
**The local sales contract must include the following language referencing the Real Estate Purchase Addendum:
“Pursuant to Section 28 of the Real Estate Purchase Addendum, this document is subject to all terms and conditions set forth in the Real Estate Purchase Addendum.”
OWNER OCCUPANCY CERTIFICATION
Only the Purchaser's that plan to live in the house need to sign this certificate as well as the selling agent.
*If the purchaser signing this certificate owns other homes, you NEED to let us know and send us the address of the other property with explanation of their current and future status/use.*
THE OWNER OCCUPANCY CERTIFICATION FORM IS AVAILABLE IN THE DOWNLOADABLE FORMS AT THE LEFT COLUMN OF THIS WEBPAGE.
CLOSING DATE
Pick a reasonable closing date allows some time for countering (30 to 45 days out; however we can usually close cash deals within two weeks). The Seller's do not like to extend the closing dates. It is easier to make the closing date far out and close early than to request extension. Make sure you tell your lender that the closing package must arrive at the attorney’s office a minimum of 48 hours before closing.
**INVESTOR DEED RESTRICTION
If you are purchasing the property as an investment property (anything OTHER than a primary residence is considered investment to the seller, this includes licensed real estate agents) Please check #14 on the Real Estate Addendum. The Seller will not transfer the property to an investor without a deed restriction.
The Deed restriction states that the Purchaser can not sell the property or obtain a security interest (get a loan) on the property for more that 120% of the purchase price for a period of 3 months.
Please see #14 on the Real Estate Purchase Addendum for the complete verbiage. PLEASE ADD THIS TO THE ADDENDUM WHEN SUBMITTING AN OFFER FOR INVESTOR PURCHASE.
MI APPROVAL FOR OFFERS
Many banks/lenders had their portfolios of mortgages insured against loss due to a borrower's default, especially those loans that were originally made to borrowers with less than 20% down payments. For this reason, each of these foreclosed loans becomes an open claim with a mortgage insurance carrier. This claim is traditionally settled when a foreclosed property is eventually sold to a new purchaser. However, the mortgage insurance carrier has the right to take title to the house and pay the lender directly for the loss if they feel, based on their data and projections, that they have a better opportunity to reduce their own losses by taking title and reselling the property themselves. It doesn't happen very often, but it is part of the process. MI approval of a sale price typically only takes a day or two.
UPON ACCEPTANCE
Upon verbal acceptance, the acceptance WILL be conditioned on Management approval, Mortgage Insurance Company Approval and/or Quality Control Approval. Once you are notified by the listing agent of full approval(s) you will receive a populated seller approved addendum with negotiated terms. You will then need to submit one clean copy of the state purchase and sale agreement with the AGREED UPON terms, seller addendum, and other forms needed, with complete initials and signatures to the listing agent ASAP. Once we have a Verbal Acceptance – there is NO more negotiating. If there are any questions please email the listing agent regarding the issues.
OFFER PRESENTATION POLICY:
Note: Fannie Mae will not allow us to present any offers until all of the BELOW items are complete.
Fannie Mae negotiates verbally until acceptance.
If more than one offer is received on a property we will inform you via a “Multiple Offers Notification” Form and you can usually expect a counter with "Highest and Best" and a time frame of 24 to 48 hours to reply.
Please make sure to resubmit your offer through www.HomePath.com when you receive a "Multiple Offers Notification" from HomePath.
Thank you for your interest in the property and we look forward to working with you!
OFFER SUBMISSION REQUIREMENTS::
(WE SUGGEST YOU COPY AND PRINT THIS AND USE IT AS A CHECKLIST. TO PROTECT YOURSELF FULLY, YOU MIGHT ALSO HAVE YOUR BUYER(S) SIGN THIS ENTIRE INFORMATION TO KEEP IN YOUR FILE-IT WILL NOT BE PART OF THE CONTRACT)
All offers must include the following prior to presentation:
_____________* Contract Cover Form
-The buyer can select their own attorney unless seller pays closing cost, then it is suggested to use The Bailey Law Group to close. Put their information in the Buyer's attorney section. Leave the Closing attorney section blank. We will fill that out once it is returned to us. **
-The Purchaser's name has to be exactly the way it will be on the title, please add Fannie Mae as seller.
_____________* Completed Real Estate Purchase Agreement (NCAR Form)
-Earnest Money is to be made out to "The Bailey Law Group"
_____________* Completed “Fannie Mae Real Estate Purchase Addendum” include the REO id number from HomePath. Make sure to have initialed on each page and signed
-The Acknowledgement date is the date of verbal acceptance. For the offer you can leave this blank.
-Please DO NOT scratch through any items on the addendum. The terms are NON-NEGOTIABLE.
_____________* Copy of Earnest Money Check made payable to “The Bailey Law Group.”
_____________* If your buyer is asking for the Seller to contribute any closing costs, Home Buyer warranty, repairs, other fees, etc. or has any contingencies/requests must be stated in paragraph 38 of the Fannie Mae Real Estate Purchase Addendum. You must use exact dollar amounts and the verbiage "up to a max of." For Example: "The Seller is to pay up to a max of $2000 towards the Buyer's closing costs." This will include all Home Warranties.
_____________* Copy of Buyer’s Pre-Approval letter or Proof of Funds on Cash offers.
_____________* Fannie Mae Lead Based Paint (LBP) Disclosure even if the house was not build before 1978.
(The Fannie Mae Lead Based Paint Disclosure form must be used, make sure to have initialed and signed. Please add REO id # from HomePath.)
_____________* Owner Occupant Certification(not used for investors)
_______________* All pages are signed and initialed accordingly
UPON ACCEPTANCE: ALL ITEMS NOTED IN THE SPECIAL STIPULATIONS PAGE OF THE NCAR CONTRACT IS YOUR RESPONSIBILITY TO VERIFY THAT THEY ARE INCORPORATED INTO THE FANNIE MAE REAL ESTATE PURCHASE ADDENDUM
All forms necessary are downloadable off of this webpage. Please make sure to have all forms complete, signed and initialed before submitting. These forms will need to be uploaded when making offer on www.HomePath.com,
ONCE YOUR OFFER HAS BEEN VERBALLY ACCEPTED AND YOU HAVE RECEIVED THE SELLER POPULATED ADDENDUM, PLEASE CREATE ONE PDF FILE WITH ALL REQUIRED DOCUMENTS AND EMAIL TO CHARLOTTEREO@GMAIL.COM. IF YOU ARE UNABLE TO CREATE ONE PDF FILE WITH ALL DOCUMENTS OR THE FILE IS TOO BIG TO EMAIL, THEN PLEASE FAX ALL REQUIRED DOCUMENTS TO OUR EFAX NUMBER, 888-677-8873 AND THIS WILL COME TO US IN ONE MANAGEABLE PDF FILE. BY SENDING THE COMPLETE DOCUMENTATION IN ONE FILE, WE CAN MORE EFFECTIVELY SUBMIT WITHOUT A POSSIBILITY OF REJECTION FROM THE SELLER.
Fannie Mae will not accept digital signatures.
**It is recommended to use a real estate attorney with Fannie Mae REO closing experience, in order to complete transaction in a timely manner.
Go to www.Homepath.com, search property listing, click "Make Offer" and complete offer submission fields. After online submission, email COMPLETE offer package to Will Owens at CharlotteREO@gmail.com or fax it to 888-677-8873.
TIME LIMIT OF THE OFFER: PLEASE ALLOW 3 DAYS (IF YOUR OFFER IS SUBMITTED DURING THE WEEKEND, PLEASE ALLOW 5 DAYS)
We have provided this information in order to make sure the process is as smooth and successful as possible for you. If you have any questions regarding any above listed instruction, please feel free to email us at charlottereo@gmail.com. We look forward to a successful transaction with you.
South Charlotte Properties
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