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Writing An Offer On A Short Sale!

So you want to write an offer on my short sale listing? Let me give you some guidelines to help you get your offer through. The following is a list of offer terms that will expedite the process of getting your offer accepted.

1. Don’t waste your time on really low-ball offers. I will not submit them to the bank.

2. Be sure to tell your client that I will not have an answer before 60 days! (Yes there are exceptions)

3. We will NOT pay buyers closings cost, repairs, home warranties, etc, etc. (3% Max Closing Cost on FHA or VA only)

4. If we deem your price too low we will counter you.

5. You MUST use the CAR form RPA-CA

Page 1 of the RPA-CA

NO Electronic Signatures

1D Escrow MUST be 30 days or less (After our approval)

2C Agency- Sherman Smith & Associates represents the Seller Only. Your Company represents the Buyer only.

3A Deposit must be a minimum on 2% of the purchase price.

Page 2 of the RPA-CA

3H(3) Loan Contingency Removal – 10 Days

3I Appraisal Contingency Removal – 10 Days

4A(1) Seller will not pay for a termite report, Buyer to pay for any report or repairs. Do Not Include a WPA

4A(4) Seller will pay for The Natural Hazard Report through First American National Hazard Report.

4B(1) Shall be checked Seller

4B(2) Shall be checked Buyer if any retrofit.

4C(1) Buyer and Seller escrow fees shall read “Each to Pay Their Own” Escrow Company shall be Kelley Escrow Company.

4C(2) Seller shall pay owners title insurance policy through Fidelity National Insurance Company.

4D(2)(3)(4)(5)(6) Shall be checked Buyer (if Applicable)

Page 3 of the RPA-CA

5B Possession to be Close of Escrow plus 3 days unless property is vacant.

8B(3) Shall read “Nothing Included” No personal property will be included in the purchase.

Page 4 of the RPA-CA

11A Shall be checked (CAR Form SPQ) 

11B Shall be checked (CAR Form SSA)

11C Shall be checked (CAR Form BIA) and (CAR Form SBSA)

11D Other Terms: If the close of escrow does not occur on or before 33 days after bank acceptance, through no fault of seller, buyer shall be charged through escrow the sum of $75.00 per day until escrow closes or cancels.

Page 5 of the RPA-CA

14B(1) All contingencies to be removed within 10 business days.(After Bank Acceptance)

Page 6 of the RPA-CA

n/a

Page 7 of the RPA-CA

25 Liquidated Damages – Buyer to Initial

26 A,B Mediation and Arbitration – Buyer to Initial

Page 8 of the RPA-CA

29 Expiration of Offer – Give us 3 days for sellers acceptance. (It may be sooner)

Page 1 of the SSA-CA

1A - The date on item “A” should be 60 days from the offer date.

6. We will only submit ONE offer at a time. All subsequent offers will be back up offers only.

7. With your offer we will need the following: Proof of down payment, FICO scores, Letter of Approval/Pre-Approval and a copy of deposit check.

8. Your buyer Can Not be related to the seller in anyway. If your buyer should have the same last name as the seller I will need a sworn affidavit that there is no relationship.

9. If the close of escrow does not occur on or before 33 days after bank acceptance, through no fault of seller, buyer shall be charged through escrow the sum of $75.00 per day until escrow closes or cancels. This Clause will be added to the purchase agreement.

10. E-mail of Mongo Fax your offer to sherman@shermansmith.com or Fax it to (714) 505-1562.

What We will Do!

1. We will submit your offer to the bank(s) within 24 hours of the first business day after accepting the offer.

2. We will make sure that your client gets all of the required disclosures, including a natural Hazard report and HOA info.

3. We will give you a weekly update after 45 days. Please Do Not Call Any Sooner!

4. Your commission Will Not be negotiated. It will be whatever is posted in the MLS.

Getting Your Offer Approved!

If your offer is written with the guidelines above it will be much easier for us to get the offer approved in a reasonable manner. Bear-in-mind that some lenders are over whelmed with short sale files and may take even longer than 60 days. (Suntrust, Chase, etc) If before approval your buyer decides that they no longer want to purchase the property, please notify us in writing signed by the buyer.

Good Luck and Happy House Hunting!

For More Information on Short Sale Click Here 

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