Submitting REO Offer: Sales Contract? Offer Form? or Formal Letter?

[David Kimball]

Hi I know that there has been some discussion about the finer points of submitting REO offers. But which is actually the proper format to use - sales contract, offer form, or formal letter?
And if offer form is the way to go, where do I get a good one, or can I just replicate the one an REO agent once emailed me?

Thanks!

[Steve Babiak]

There is really no answer other than it depends on what the listing agent and lender (seller) are willing to accept. Some lender sellers want to use their own custom contract, while others will use the normal real estate agent contract for the state where the property is located; in either case the lender will usually have an addendum that will superseded clauses in the contract. Some listing agents are happy to just get a short offer letter, since it saves trees, and then go with the full contract once the numbers and terms are have been agreed upon. And some lenders require the listing agent to follow specific procedures, so not following those will just lead to any offer being ignored.

So, see what the listing agent requires. Often the listing will state some of these details, so that the agent doesn't have time wasted for silly stuff like this that can just be spelled out.