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Buying a Bank-Owned Property |
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| Welcome to Knight Home Solutions! At KHS we are committed to promoting home ownership and home buyer education. We have compiled general information for you to better understand conditions and requirements of buying a bank-owned home. |
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Eligible Purchasers
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Anyone can purchase a bank-owned home. The general requirement is that the prospective purchasers provide a pre-qualification letter, or proof that funds exist for a cash sale.
Knight Home Solution's available bank-owned homes are listed on our website and on the MLS, through listing brokers. In order to place a bid on a bank-owned home in our inventory, you must work with a licensed real estate broker and/or agent. To find a licensed Real Estate Professional in your area, click here.
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| Terms of Offering
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'AS IS' Sales - Properties are offered to prospective purchasers 'AS IS' without repairs or warranties. Purchasers are encouraged to have a home inspection done on the property. Purchasers have seven (7) calendar days from the date of the Purchaser's signature on the sales contract to conduct a home inspection or desired tests and risk assessments. Both the home inspection and any related tests are at the purchaser's expense.
Disclosure of Property Condition - Prospective purchasers will receive all available property condition information prior to the execution of a sales contract.
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The Bidding Process
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Bids must be submitted through our online bidding system. Only licensed real estate brokers/agents may submit bids on behalf of prospective purchasers.
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We list new properties on our website every Tuesday, for a period of seven (7) business days.
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KHS will review all submitted bids on the 8th business day, as if all bids were submitted simultaneously; bids are not reviewed on weekends or holidays.
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Any bids submitted after the 7th business day, will be reviewed on a daily basis.
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Your real estate agent must check the bid results through the online bidding system. In many cases, a courtesy email is also sent to the agent to notify him/her of the results.
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The winning bid is equal to or greater than the minimum acceptable bid for the specific listing or the bid that yields the highest net return.
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The winning bidder will have two (2) business days or forty-eight (48) hours to submit a completed sales contract or the bid will be cancelled and awarded to the back up bidder, or re-listed.
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If a bid has been placed on a property with incorrect information, by mistake, or if a bid is awarded and the purchaser does not want to proceed with the sales contract, then the real estate agent must send in the bid cancellation form within 24 hours of the bid. The property will then be cancelled and awarded to the back up bidder, or re-listed. |
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| Terms of Sale
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The completed and the fully executed sales contract and required documents must be delivered directly to Knight Home Solutions. You may obtain a copy of many of the required forms and a Sales Contract Checklist, under the Forms section of our website. Please keep a tracking receipt and retain a copy of all documents for your records.
Earnest Money - KHS requires that all bids received, be backed by earnest money in the form of cash or certified funds and that the Selling Broker, submit with the bid, a certification that the earnest money has been deposited in the Selling Broker's escrow account. No later than seventy-two (72) hours following receipt of a signed sales contract, the Selling Broker may be required to deliver the funds to the closing agent in accordance with local custom.
Amount - The amount of earnest money deposit required for a property with a sales price of:
- $50,000 or less is $500
- $50,001 to $100,000 is $1,000
- $100,001 or higher is $1,500
- Vacant land is fifty (50) percent of the list price
Forfeiture - Earnest money deposits will be forfeited or refunded in whole or in part for failure to close a sale in accordance to Knight Home Solutions' guidelines.
Return of Earnest Money - The failure by a purchaser to close on a property within the allowable time period, including any extensions granted by the seller or KHS, will result in the forfeiture of the earnest money deposit, except where special circumstances exists and are documented and accepted by the seller or KHS. The purchaser and the real estate agent will review and acknowledge the Forfeiture of Earnest Money policy during the sales contract process.
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Closing
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Closing agent responsibilities and duties include (but are not limited to) conducting closings, submitting closing packages, and wiring sales proceeds as appropriate.
Scheduling the Closing - Once your sales contract has been finalized, reviewed and accepted, Knight Home Solutions will sign the contract and send you and your agent an acceptance letter on behalf of the seller. This letter will prompt you to move forward with scheduling the closing. The real estate agent and purchaser will coordinate the closing, with the closing agent. You will have between thirty (30) and forty five (45) days to close. |
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