NEVADA:  # 1 Foreclosure For Filings/Per household in the U.S.  According to RealtyTrac, Clark County, Nevada had 10,099 properties with foreclosure filings in August 2008 (1 in every 91 housing units).

REO Experts, John & Leslie Carver, have been successfully listing and selling bank-owned/foreclosure homes in Las Vegas for more than 13 years.  Team Carver has already closed over $40 million in sales volume through August of 2008. 

The following Q & A is provided by John & Leslie as a service to agents and buyers alike to assist in a smooth REO purchase.

Why are there so many foreclosures in Nevada?

• High number of previous Buyers that were investors and non-owner occupied
• High number of Adjustable Rate Mortgages with increasing mortgage payments
• High number of mortgages with 100% financing and no equity in the property

What is a foreclosed property?

• The true term is REO, “Real Estate Owned”
• Owned by the bank who is the seller 
• No mortgage on the property
• List price is determined by market value for current condition with a 30-90 day sell   

What are some things I should put in my offer?

• Insert the following:  “Seller to complete lender/appraisal required repairs not to exceed $__________.”   
• Write your offer contingent upon a home inspection.
• Buyer can back out based on due diligence clause and receive earnest money back
• Seller's Choice of title
• No assumptions or owner will carry
• The bank may pay for a home warranty and/or the appraisal (request it)
• Seller can close quickly
• Seller will not pay for C,C & R’s unless agreed in offer

What should I submit with my offer?

• Pre-qualify letter or verification of funds
• A copy of the earnest money check – make payable to “title” if escrow unknown
• A prequal letter with lenders bank (if required)

When can I expect a response?

• Generally offers are responded to within 3 – 5 business days, but may take up to 3 weeks. 

How does the bank respond?

• Initial offers need to be presented in writing, preferably on the GLVAR form.  The bank negotiates verbally, so future negotiations will be verbal.
• Multiple offers on the property? Buyers to submit the highest and best offer.   
• Submit highest offer – may be over list price

When is acceptance?

• Once the Buyer signs all documents and provides copies of required paperwork, the property may be put in pending status. 
• Acceptance is only upon Seller signature and generally contingent upon investor approval.

What disclosures and paperwork does the bank provide?

• The Buyer must waive Sellers completion of the Sellers real Property Disclosure statement and other disclosures. 
• Banks do not provide the CC&R’s or certificate of resale packet
• AS IS Purchase Addendum

With so many bank owned properties on the market, many clients are looking specifically to purchase a foreclosure property.  Don’t be afraid to show these homes, just prepare your Buyer in advance of the process and condition of the home. These properties are typically priced slightly less than comparable other properties and can be a terrific transaction! 

Contact Team Carver today: