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With a large inventory of homes, and access to many others, WILMOTH can help qualified investors and homebuyers find the right solution to their needs. Investors supplement their portfolios with property opportunities found at WILMOTH. Homebuyers will find the perfect home in our inventory for sale.

 

Investors

With a large inventory of homes, and access to many others, WILMOTH can help qualified investors create or supplement their portfolios with property opportunities. Additionally, our mission is to provide investors with information to sort out the properties that offer the best fit for their portfolios.

Investors turn to us because of our experience in the investment community working with purchases and then finding tenants in our Property Management division. Investors trust WILMOTH to provide all the tools necessary for truthfully and accurately providing them representation that creates excellent buying opportunities.

Many residential real estate investors check with us first to review possible property purchases and discuss the prospects for leasing the acquisition while maintaining expenses. Our investing strategies and management solutions allow our clients to improve their return on investment (ROI). This improvement can be measured by actual dollars and time saved.

Our investing clients are a cross-section of the population. Clients include:

  • Full-time residential investors with large portfolios.
  • Professionals-such as doctors, lawyers, and executives-who desire diversification to their overall investments but do not have the time or knowledge to actively manage a real estate investment.
  • Relocated homeowners who have chosen to retain their home and make it an income producing property.
  • Residential investors just getting started or owning a few units who desire the opportunity to find great values.

No matter what your needs, when you ask WILMOTH to assist you through the maze of purchasing a property, you will get integrity and honesty.  We are not going to tell you what we think you want to hear.  We are going to provide facts, information and guidance.

 

Here are some common questions.

Corporate-Bank Owned Homes

What does it mean that this property is sold as-is?

When a property is being sold "as-is" no repairs will be made by seller.

If an inspection contingency is included in the offer, any response should only include any major structural or safety issues over $500 and should include a possible credit amount at closing.  Ideally the request will be accompanied by two contractor bids. There are no guarantees that any allowance will be given.

A property sold "as-is" should be priced assuming repairs are needed.  The seller is not agreeing to make any repairs nor is likely willing to lower the price for repairs needed on the property.  If the property is sold "AS-IS" and no repairs or refurbishments have been made - it should be assumed that some work of some type is needed and the offer should be reflective of this information.

The seller realizes that work needs to be done and should have already priced the property accordingly.

Why do I have to provide a Proof of Funds or a Pre-Approval?

Purchasing bank or corporate owned properties requires making available, with your offer documentation, that the purchaser either has the funds or is approved for bank financing. When a buyer submits this information with their offer, and their offer is accepted, it eliminates the financing contingency of the purchase agreement. Why? Because the point of the requirement is to prove to the seller that the proposed purchaser does not face any problems on completing the purchase-they either have funds or a mortgage pre-approval in place.

When the proof of funds is provided as cash, then the method for purchasing the property needs to be "Cash. Please do not come back after the offer is accepted and state your buyer now wants to use "financing". If you are the buyer, or the agent representing that buyer, the seller may choose to cancel the purchase agreement and retain the earnest money due to "non-performance under the terms of the accepted contract."

Pre-approvals and the purchase contract should specify the type of loan and the LTV (loan-to-value) the borrower is seeking.  The seller may choose to accept an offer that provides a better proof of funds if you submit a pre-approval and it has a lot of contingencies, or it appears to be sketchy.

What happens if there are multiple offers for a property?

If the seller receives multiple offers on a property, buyers may be requested to submit their highest, best and final offer by an agreed upon date and time.

This is fairly common and the process is handled a little differently by each seller. In all cases except HUD homes, WILMOTH will communicate with all buyers and provide a deadline to change their offer if desired.

With HUD homes all bidding is coordinated through HUD and notices will usually come from HUD or an Asset Manager.  The notice will provide the opportunity to rebid for your buyer at the HUDHomestore.com. With HUD homes please remember, WILMOTH Group does not have any involvement in the bidding process.

Typical Process:

When WILMOTH Group receives a second offer on one of our bank owned  listings, all negotiations on the first offer may stop per the seller's instructions (unless the seller tells us to accept the first offer already presented.)

WILMOTH's procedure after receipt of a first offer is to:

Send to all parties with offers submitted, and all future offers submitted, a  Multiple Offer Disclosure form. This form will usually be completed by all buyer's agents. This form MUST be returned with a Purchase Agreement that reflects the buyer's highest and best offer. The Multiple Offer form is specific to each seller and it also must be completed completely.

If your Buyer had the first offer you will be contacted and informed we are now in a multiple offer situation and that you will need to submit a Multiple Offer Disclosure form.

It is important to advise your Buyer that when a Multiple Offer Disclosure is requested they are being given ONE chance to make their "Highest and Best" offer. Therefore, if your Buyer was the first to submit you may change the purchase agreement if the Buyer so desires (recognizing that there are now going to be multiple offers and those will all be considered highest and best offers). Please advise your Buyer that this is a one time offer opportunity. There will not be requests for revised offers. The Seller might choose one offer to work with and make a counter offer to it but this is your Buyer's one chance to make their best offer.

The Seller might do one of several things:

  • reject all offers,
  • accept one offer
  • or counter one offer.

When we have a final decision from the Seller we will alert you.

Finally, under NO circumstances will  WILMOTH Group reveal the content of any other offer received.

Who chooses the title company?

With the exception of HUD owned homes (where the buyer may select the title company) the bank/corporate seller chooses.

WILMOTH (as listing agent) has no say in the matter either.

The reason is that the seller has significant amounts of Title work completed during the Foreclosure process.  The Title company contact information is usually provided with the signed documents from the seller.  In all likelihood the Listing Agent will not have this information prior to receiving the document package.

Why do I not get back a signed purchase agreement when I am told my offer is accepted?

A common source of confusion on corporate-bank owned homes is what constitutes an actual contracted agreement.

Corporate-bank owned properties will often provide a verbal acceptance until the seller's specific purchase contract terms (in the form of an Addendum to the purchase contract) are executed by both the buyer and the seller.

There are situations where the Addendum is not executed and returned in a timely manner and the Seller proceeds with accepting another offer. It is imperative that if you receive an acceptance that you execute the seller's Addendum and return it within the demanded time frames.

Please understand that no offer is fully accepted until the Seller signs the Addendum package returned to them.

How much earnest money must be submitted?

In general, the earnest money deposit (EMD) is negotiable. In the case of HUD homes there are set rules. The HUD rules are actually fairly good guidelines to utilize when making your offer on any bank owned home.

When bidding on a HUD home a $1,000 earnest money deposit (EMD) is required on all offers for properties listed over $50,000. Under $50,000 requires a $500 EMD.  For vacant lots 50% of the list price is the required EMD.

A couple of other things to remember when making an offer on a bank owned home.

Generally, a minimum of 10% is required for cash purchases.

All Earnest Money Deposits must be in the form of a Cashiers Check or Money Order.

What is the Corporate/Bank Addendum?

Almost all corporate owned properties require an additional document be executed known as the "Addendum". This document is in addition to the signed Purchase Agreement and any counter offers. It carries additional terms unique to purchasing a corporate owned property. Please don't "just sign" this Addendum!  Take time to read it and understand to what you are agreeing.  Most Addendums are highly in favor of the Seller.  The Addendum addresses many loopholes that have been exploited by Buyers in standardized purchase agreement documents. In some cases the Purchase Contract terms may actually be presented on the required contract forms and the Realtor purchase agreement document discarded.

Addendums typically carry a charge per diem if the property does not close by the agreed upon close date.  If this clause exists it will state that it goes into effect if the fault for not closing on time is on the buyer or lender.

No changes are allowed to these seller's addendum. Always remember, all contracts are subject to the seller's management approval.

A deal is not a deal until the documents are completely signed by the seller!

Can I take possession before the closing in order to start making repairs?

Due to liability risks, the Purchaser is not to take possession until the Seller has been funded (closing is final).   No repairs are to be performed by the Purchaser prior to this time.

What Are The Details of the Fannie Mae Deed Restriction?

If you are placing an offer on a Fannie Mae forelcosure, in order to receive an acceptance of your offer, you will be required to accept some special restrictions. These restrictions are added to the Deed you will receive at closing, making it impossible to ignore and subsequently are called the Fannie Mae Deed Restriction.

The exact language used on this deed restriction is as follows:

Buyer cannot sell/encumber property for more than 120% of purchase price for a period of 3 months from the date of close.

What happens with Board of Health fees, unpaid taxes, and sewer liens?

Local Boards of Health do not always timely file liens on properties. The title insurance only covers recorded liens. The title company will make all efforts possible to identify any liens that could cloud the Title. These charges will be paid by the seller at closing in order to provide clear title at the date of closing. It is in the interest of your buyer to check with the local Board of Health to make sure there are no outstanding bills that have not yet been recorded. This is the same with sewer liens. Also, if the subject property is a newer build, it is in the interest of your buyer to check if the assessed taxes are correct.

Notify the Title Company with written records of any pertinent information.

What are realistic time frames to complete the transaction?

Generally you will have 30 (to 45) days from mutual acceptance to close the transaction.

Often the proposed closing date on the original offer is unrealistic due to the elongated negotiation and acceptance process with the seller. The seller's Asset Manager knows that you can't close in a week and a half (unless your offer is cash).   Asset managers know that appraisals, inspections and the loan process take time.

They will assume that you have taken the time prior to making an offer to become pre-approved for the loan and that there will be no trivial delays beyond the 30 (to 45) day closing period.

Read the Seller Addendum carefully – there is often a per diem late fee assessed for tardy closings. The corporate seller will not suffer delays due to the purchaser's lender not performing in a timely manner. Begin your inspections upon being alerted that your offer is accepted.

Can the buyer complete an inspection?

Just like any other sale, your buyer has the right to fully inspect the property within the frame of the inspection contingency of the purchase agreement. Seller will not order or pay for any inspections.

It is very important that you give us at least 3 BUSINESS DAYS NOTICE PRIOR to scheduling your inspection. Some utilities (such as electricity) will likely be on prior to your making an offer, others will not (such as gas or propane) The Listing Agent has NO control over the work schedules of the local utility companies. As such the Listing Agent will not be responsible for re-inspections and/or associated fees. It is not a bad idea to visit the property a day PRIOR to the inspection to check if systems are on and working.

The seller, or our company, will not approve any pre-contract inspections. Additional utilities will not be turned on, de-winterizations will not occur. Radon tests will not be performed etc. This is the purpose of the inspection contingency. Assess the property the best you can in the condition it is in (everybody else will be looking at it the same way). Negotiate a successful offer and include an inspection contingency. Then you can complete an inspection and address anything found under approved conditions in an inspection response.

HUD-owned homes inspection procedures are coordinated with the Field Services company only AFTER the HUD purchase agreement has been ratified (executed) by HUD.

Will a cash offer be looked at favorably?

Cash offers are normally looked upon more favorably than financed offers. Therefore, the banks normally frown upon trying to change to financing in an already accepted purchase agreement.

Corporate sellers will not accept mortgage companies or private lenders to be included on the HUD settlement statement if the accepted purchase offer stated "cash" terms.  Selling institutions do not consider credit lines to be a form of cash. Credit lines are conventional loans.

Cash "AS-IS" offers are not contingent upon having the funds available to close or the condition of the property. The buyer should be fully informed that (at a minimum) Earnest Money will be forfeited if they do not close the property.

How long does it take to receive an response to an offer?

Corporate sellers may take up to 7 - 10 days to provide a response to an offer.  Some corporate sellers will not look at offers until the property has been on the market for 5 to 10 days.  Please plan and prepare for the  extra time for the seller to respond to an offer.

Your offer will be timely submitted. If you have not heard a response by your expiration date and time, we are not ignoring your requests.  We simply do not have an answer from the seller. Each Asset Manager representing the corporate owner works with hundreds of properties at any given time and they try to respond timely, but unfortunately, this cannot always be done. As soon as we have a response, we will promptly forward it on to you.

Also, the listing agent has no control over the corporate seller's decision making process which may affect the time for a response to an offer. On rare occasion they will respond in the first 48 hours. However, more than likely they will respond in 3 to 5 days.  WILMOTH Group will notify you immediately when we receive a response.

Remember...we all share the same goal of selling the property.  If you have not heard from us it is because we have no update to give you-certainly not because we are ignoring you!

What are realistic time frames to complete the transaction?

Generally you will have 30 (to 45) days from mutual acceptance to close the transaction.

Often the proposed closing date on the original offer is unrealistic due to the elongated negotiation and acceptance process with the seller. The seller's Asset Manager knows that you can't close in a week and a half (unless your offer is cash).   Asset managers know that appraisals, inspections and the loan process take time.

They will assume that you have taken the time prior to making an offer to become pre-approved for the loan and that there will be no trivial delays beyond the 30 (to 45) day closing period.

Read the Seller Addendum carefully – there is often a per diem late fee assessed for tardy closings. The corporate seller will not suffer delays due to the purchaser's lender not performing in a timely manner. Begin your inspections upon being alerted that your offer is accepted.

Will the owner accept contingent sales?

It is highly unlikely that any corporate seller will accept a contingent sale.

If the seller accepts your offer then finds out that the buyer really does need to sell a home in order to purchase (and you haven't disclosed that) the sale will be immediately cancelled. Don't expect to have the earnest money returned in this type of situation.

What happens with Board of Health fines, unpaid taxes, and sewer liens?

Local Boards of Health do not always timely file liens on properties. The title insurance only covers recorded liens. The title company will make all efforts possible to identify any liens that could cloud the Title. These charges will be paid by the seller at closing in order to provide clear title at the date of closing. It is in the interest of your buyer to check with the local Board of Health to make sure there are no outstanding bills that have not yet been recorded. This is the same with sewer liens. Also, if the subject property is a newer build, it is in the interest of your buyer to check if the assessed taxes are correct.

Notify the Title Company with written records of any pertinent information.

How do I get the utilities on in a property for an inspection?

Any inspection requested by the buyer is intended to be only for buyer's information. We will have utilities turned on to accommodate the inspection (with exception of HUD properties where buyer and agent are responsible and coordinated with the Field Services Manager-FSM).

If a property has to be de-winterized for the purposes of an inspection, buyer will be required to sign an addendum stating "If buyer does not close on property, for any reason, buyer will be responsible for the cost of having property re-winterized by Seller approved vendor"

Utilities will be turned on if safe to do so. Depending on the timing of the winterization, it is quite possible that plumbing repairs will be needed and the water may not be able to be turned on. Please keep these factors in mind when making an offer. If an inspector/appraiser is unwilling to turn on pilot lights, main water valve, etc., it is the buyer or buyer's agent responsibility to make arrangements to have them turned on and off again.

Electricity will be turned off as of the day of closing; please make arrangements to have utilities transferred to the buyer.

Remember- HUD home procedures for utilities are determined by the FSM.  Please contact the FSM listed with the HUD property and follow their procedures for utility activation.

When Can I Tell My Client That They Have A Deal?

A common source of confusion on bank owned homes is what constitutes an actual contracted agreement. All bank-owned properties will give a verbal or email acceptance only until the bank's specific purchase contract terms (in the form of a bank addendum or specific purchase contract) are executed by both the buyer and the seller. There are situations where the bank contract or addendum is not executed and returned in a timely manner to the bank and the bank proceeds with accepting another offer. It is imperative that if you receive an acceptance for a bank owned property that you execute the contract or bank addendum and return it within the demanded time frames.

Finally, please remember that no offer is fully accepted until the Seller signs the Contract or Addendum package returned to them with buyer's signatures.

Can the buyer cancel if they find something wrong?

The buyer has the right to cancel the contract and receive their deposit back if they do so within their contractual time frame (unless specifically noted).

Inspections are encouraged on all homes.

Can I assign the purchase contract after it is accepted?

No - Corporate sellers do not allow assignments of contracts.

Can I submit a back-up offer on a corporate-owned home?

The corporate seller will have us hold any back up offer in situations where we are managing the bidding process (NOT HUD or Fannie Mae). If the accepted deal falls out, the seller may, or may not, ask for the back- up offers first. They often tell us to place the property back on the market and let all parties resubmit new offers. Unfortunately, if it is pending it means we have an accepted offer and the corporate seller is not requesting or considering any more offers.

When we have posted a listing as "Active- Back Up Offers" the frequent question asked is: "Noticed you are taking Backup offers. Is there still time to get one in?" Back up offers status means the seller has accepted an offer and not all documents are executed. It is our way of trying to let you know the situation has not officially pended but that there is an accepted offer.

Will seller pay for any repairs?

Please understand that this home is being sold "AS-IS." If the corporate owner has rehabilitated the home, their scope of work has already been determined and can not be changed. As a rule, ONLY issues which are LENDER REQUIRED will be addressed. Asset Managers are very familiar with what constitutes a lender required repair and will not approve "cosmetic," "dated", or "wear and tear" related issues.

Will I receive a confirmation that my offer has been received?

All offers submitted, as instructed, to WILMOTH Group (some corporate owned homes will require an on-line submittal to a third party unaffiliated with our brokerage) will receive a confirmation of receipt. If you do not receive a confirmation of receipt within one business day of submitting the offer, please send an inquiry to offers@wilmothgroup.com stating the property address, when you submitted the offer, where the offer was submitted, and the buyers name. We will respond back to you with further instructions

What form do I use to make an offer?

Realtors-Please use your local state REALTOR approved Purchase Agreement form. Fannie Mae buyers will also submit their bids first at Homepath.com.   See the Fannie Mae areas of this site for more information.

Buyers Not Represented By a Realtor- click the "Contact Form" section of this site and let us know you wish to make a bid. One of our team will get right back to you to discuss your proposed offer.

Why did the seller not sign the counter offer?

You may receive a Seller's Counter Offer with no signatures. These forms are generated by the bank's Asset Manager or the outsource company (and often come to the Listing agent as an email attachment). Once an offer is accepted the entire "package" (which may include the Offer as well as Counters, Addendums, copy of the check, et.al.) is sent to the bank for signatures.

Once you are informed that your offer is accepted, it is. (acceptance may be accompanied by the aforementioned worksheet). REO departments and Asset managers give the "OK" and then go to their managers for signatures. (It is highly unlikely to have an Asset Manager "un-accept" an accepted offer. Yes, you could be the first, but it is highly unlikely.) We realize it is an unusual business practice to agree to offers orally, but corporate sellers often have their own way of doing business and we appreciate your understanding.

Buying

What does "Proof of Funds" mean?

It is strongly recommended that your offer be submitted with a proof of funds or a preapproval letter.  In fact, many corporate, and investor, sellers insist on receiving proof of funds with any offer.  A proof of funds provides assurance to the seller that the proposed buyer has financial capacity to perform on their offer.

Corporate sellers will likely favor offers that specifically show the proposed buyer's financial capacity to complete the purchase as proposed.

For a buyer using borrowed funds the pre-approval should include the amount for which the buyer is qualified, type of loan, contact information for the lender, and a current date or no more than 30 days old.

Cash offers should have a proof of funds letter or a copy of a statement showing funds available in excess of the purchase price. Current bank statements or recent letters (less than 7 days old) from a bank representative are acceptable documents.

Are cash offers considered more favorably than financed ones?

Cash offers are normally looked upon more favorably than financed offers. Therefore, the corporate seller/bank normally frown upon trying to change to financing.

These sellers will not allow mortgage companies or private lenders to be included on the HUD settlement statement if the accepted purchase offer stated “cash” terms. Cash “AS-IS” offers are not contingent upon having the funds available to close or the condition of the property.

The buyer should be fully informed that (at a minimum) Earnest Money will be forfeited if they do not close the property. Selling institutions do not consider credit lines to be a form of cash. Credit lines are conventional loans.

Can I take possession before the closing in order to start making repairs?

Due to liability risks, the Purchaser is not to take possession until the Seller has been funded (closing is final).   No repairs are to be performed by the Purchaser prior to this time.

How do I go about making payment?

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WILMOTH Group

Specialists in non-owner occupied residential real estate since 1994.

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