The Offer Rules

Offer Rules

To make an offer on one of these bank foreclosed properties, you must follow the guidelines below. By following these guidelines, you will expedite the sale process. We will not present an incomplete offer as all incomplete offers are automatically rejected by the bank.

If you are a Purchaser and you already have an Agent: Please contact your agent immediately so they can meet with you at their office to go over all necessary documents.

If you are a Purchaser and you do not have a REALTOR: Please contact us at 313-277-6453 or via email.

If you are an Agent: Do not submit a letter of intent. You need to submit a full and complete offer. Be sure that you have all necessary documents initialed and signed where required. Do not leave any blanks in the addendums and forms. Do not change or alter the bank addendums in any way. You must include all the items below in order for the offer to be presented. The bank will not respond to incomplete offers.

Agents fax all offers to 313-278-6453. Confirm our receipt of offers, and get your offer status by emailing the Transaction Coordinator Monday through Friday between 9:30 a.m. and 6:30 p.m. Please do not call. To speed the sale, be sure to include your cell phone number and email address so I may contact you and forward necessary documents.

Earnest Money Deposit: Every offer will require an earnest money deposit in the form of a certified funds. If you are making the offer directly at Real Estate One, Inc. make the earnest money deposit check out to Real Estate One, Inc. Agents must deposit the earnest money deposit within 48 hours of bank acceptance. Note that certain banks require the listing broker, or the banks themselves to hold the earnest money deposit.
Proof of Funds: If paying cash for the property. You must provide a current copy of a your bank statement showing sufficient funds to close or a letter from the branch manager including the phone number on bank letter head showing proof of a non-contingent line of credit. If you are getting a home equity line of credit to fund your purchase, there may be a three day right of rescission period before you can access your funds. You must be able to access your funds and close on the property within 10 days from the bank's acceptance.
Mortgage Commitment Letter: If you are getting a mortgage, we need a mortgage commitment letter showing the stipulations or conditions required to clear underwriting for a clear to close. A pre-approval or pre-qualification is not sufficient. If the buyer's approval letter is determined to be vague, the loan officer must fill out an additional mortgage status form for you offer to be considered.

Your loan must be able to be approved and close within 30 days from the bank's acceptance. If you are getting a mortgage, be sure to inform your lender that you MUST close on or before the agreed closing date or you will lose your deposit and the house! Your lender works for you, and they must follow your instructions, as well as, the conditions of the purchase agreement.

IF YOUR LENDER CAN'T CLOSE THE MORTGAGE ON TIME, EITHER DON'T WRITE AN OFFER ON THE PROPERTY OR FIND A NEW LENDER.
Taking Title: The Purchaser must inform us upfront as to how they will be taking title. If the purchaser is married and is buying the property and holding title as a married person, they must bring their spouse. If they are taking title as a corporation, they must be able to sign for the corporation and may be required to provide the corporate docs prior to closing. Due to changes in Trading with the Enemy Act, the buyer's may be required to provide date of birth, current address and phone number information prior to closing.
Required Disclosures: The Purchaser will need to review and sign any federal lead paint, state mold and/or property condition disclosures, as-is hold harmless addendums and any addendums required by the foreclosure bank prior to seller acceptance. Do not alter bank addendums in any way. The bank will reject any altered addendums.
Completed Documents: The Purchaser will need to review and sign an offer to purchase in person, preferably in blue ink. Every clause and paragraph must be reviewed and initialed, leave no blanks in the offer or required addendums.

Once an offer has been accepted by the bank, make all necessary changes to the offer and addendums, the bank requires at least on copy with original signatures. Deliver the documents to Real Estate One, Inc. 23756 Michigan Ave, Dearborn, MI 48124. We will overnight the originals to the bank for written acceptance.
Pre-Sale Inspections: If the Pre-sale inspection is required, you will need to include a cashiers check or money order made out to city where the property is located for the proper amount so that we can order the inspection. Please note this is a mandatory part of the offer and is not negotiable. We will not close without a waiver.
Failure to Close by Contract Date: If the Purchaser fails to close by the agreed upon contract date, the Bank may agree to extend to the Purchase Agreement up to an additional 10 days at a cost of $100 per day, paid upfront and non-refundable only if agreed in writing between the parties. The buyer's original earnest money deposit will become non-refundable along with the extension per diem. Note: No fee will be required due to Bank having title issues.
As- Is Sale: All properties are sold on an As-Is basis only, the Bank will make no repairs. If the Purchaser is having a private or city inspection, it is for informational purposes only. Do not bid if you are not satisfied as to the condition of the property as you see it.
Closing Costs: In many cases, the bank will pay between at least 3% and occasionally up to 6% towards the purchaser's closing costs and pre-paid items. It is rare for the banks to pay more than 3% unless the buyer provides a good faith estimate showing their costs. The banks will not pay towards the Purchaser's down payment. They normally do not pay for or provide home warranties either. On rare occasion, the bank may escrow monies for repairs to be completed after closing. All repairs must be completed by licensed contractors. Monies held will be released to the contractors only following completion of said repairs, and only for the amount of the repairs as previously agreed. Any repairs that exceed the agreed upon amount become the liability of the purchaser.
Water Bills: The bank will pay the current water bill up until the date of closing only to ensure clear title. Due to the lag time at various municipalities for receiving special or final water readings, the banks will not escrow monies. After closing, it is the responsibility of the Purchaser to obtain a final reading and get the bill to the title company within 15 days so that the bank can pay the bill. It is recommended that the purchaser and/or the buyers agent schedule and pay for a final reading, prior to, immediately following closing. The Purchaser and/or agent may need to wait at the property to meet the water department and allow them accompanied access of the property. Certain municipalities legally require their own DPW personnel to de-winterize properties. The banks will not pay any bills submitted after 30 days.