The Most Effective Ways of Finding REOs (4)
The deposit is usually a nominal amount ($100) that will be refunded or returned to you if your offer is not accepted. If your offer is accepted, the lending institution keeps your deposit and applies it to the purchase price.
The financing terms. If you want the lender to provide you with financing for the property, your offer should include the financing terms including the interest rate you wish to pay, the amount you want to borrow, and the length of time of the mortgage (usually 15, 20, or 30 years).
The down payment. If the lending institution you are purchasing the property from is providing financing, the difference between the amount they will lend you and the purchase price, is called the “down payment.” Your offer should include that number.
The closing date. Your offer should stipulate the day you wish to take title (ownership) and possession. Your contact information. Be certain to have your name, address, and telephone number on the letter so that a representative from the lending institution can contact you with a decision regarding your offer. Figure 3-2 is an example of an offer letter for a bank-owned property.
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