Appraisers, Brokers & Counselors of Real Estate

Proof of Funds Authorization

Reo-Purchase-Procedure

Verification of Seller's Ownership & Authority to Sell

BUYER AND SELLER ESCROW REO DOCUMENT VERIFICATION PROCESS

BUYER’S PROCESS:

1. Buyer sends their Proof of Funds (Financial Institution Letterhead) and Soft Letter of Intent to their own Escrow Company. Make the soft LOI out “To whom it may concern” and should outline their purchasing parameters refer to sample LOI as a documentation guide)

2. Buyer sends to Escrow Company their Buyer Mandate’s Letter of Authorization.

3. Buyer, Buyer's Mandate and all Buyer's Intermediaries sign a NCND Agreement and submit it to the Intermediary Coordinating Representative.

Buyer’s Escrow Company Process Steps:

1. Buyer’s Escrow Agent verifies the Authenticity of Buyer’s Proof of Funds Letter directly with the Financial Intuition. Verification can be either verbal or written verification as they seem comfortable.

2. Buyer’s Escrow Agent verifies the signatory of the Soft Letter of Intent with the State Corporation Registry to ensure that the signatory is the appropriate signatory if not, then work with Buyer’s Mandate and Buyer to correct the LOI document within five days or cancel the order.

3. If the Entity on the Proof of Funds and Entity for the LOI are mismatched then the Escrow Agent will obtain appropriate Corporate Resolutions or other documents as necessary to explain why the Proof of Funds is not a match to the LOI Buying Entity.

4. Buyer’s Escrow Agent will complete a “Buyer’s Agent Escrow Representation Letter” (See Attached) on their Letterhead and be ready to share this with the Intermediary Representative and the Seller’s Escrow Verification Agent.

SELLER’S PROCESS:

1. Seller sends their “Seller’s Representation Letter” into their own Escrow Company.

2. Seller sends Seller’s Mandate Letter of Authorization into their own Escrow Company.

3. Seller, Seller’s Mandate and all Seller's Intermediaries sign a NCND Agreement and submits it to the Intermediary Coordinating Representative.

Seller’s Escrow Company Process Steps:

1. Seller’s Escrow Agent verifies the Authenticity of the Seller’s Mandate Letter of Authorization.

2. Sellers Escrow Agent will verify a portion of the Seller’s property Tape by completing spot checks to ensure the tape delivered is truly credible and the product is legitimate and available for the buyer.

3. Seller’s Escrow Agent will confirm Seller's Authority to Sell Properties.

4. Seller’s Escrow Agent will complete a “Seller’s Escrow Agent Representation Letter” (See Attached) on their Letterhead and be ready to share this with the Intermediary Representative and the Buyer’s Escrow Verification Agent.

INTEMIDIARY REPRESENTATIVE’S PROCESS (ABC REO's, LLC.)

1. Assist Buyer and Seller to complete their process steps.

2. Upon completion, Intermediary Representative shall receive and review the Buyer’s and Seller’s Escrow Company’s Verification Letters

3. The Sellers Escrow Agent calls the Buyers Escrow Agent and they confirm with each other that the documents are in fact in the possession of the other Escrow Agent.

4. The Buyers Escrow Agent will call the Buyer to confirm the Seller documents are there and the Sellers Escrow Agent will call the Seller to confirm the Buyer been proofed and the other documents are there.

5. If both Seller and Buyer prove out to be Authentic, then Intermediary Representative will assist and coordinate Buyer's and Seller's Mandates in completing the Master Fee Agreement and getting the Buyer’s Signature along with Mandate's Signatures.

6. Intermediary Coordinating Representative will document the Intermediary Sub Fee Agreement and obtains all appropriate information and signatures and negotiate an independent Paymaster for the Intermediary Parties.

7. Facilitate Seller’s and Buyer’s Attorney introduction calls or provides the Authorization to Release Buyer’s Escrow Agent to Release to the Seller’s Escrow Agent the respective counter party’s documents.

NEXT PROCESS STEPS:

1. Once the Buyer reviews the preliminary REO package tape and is in full agreement with moving forward on the REO package the Purchase deposit is placed into Escrow and contract terms are negotiated and finalized. The Buyer then receives a final REO package tape to complete their necessary Due Diligence. Five days are generally allotted for the Buyer’s due diligence accordingly.

2. At this stage the buyer is expected in good faith and provided the REO package is acceptable the transaction is promptly settled and closed. This generally occurs on the sixth day.

3. Fees due to Seller's/Buyer’s Mandates and Intermediaries are clearly and articulately outlined within the Master and Intermediary Sub Fee Agreement / Preferred Participation Agreement and have been submitted to Escrow for settlement. Said MFA-ISFA / PPA is signed off and fully Executed / Authorized by the selling and buying principles as approved for paymaster (or attorney) to disburse fees due to various individually or entities as the qualified disbursement agreement for Intermediaries.

Notes:

1. Escrow Companies should be fully authorized, reputable (Nationally Recognized) Escrow Companies.

2. Buyer and Seller remain in full control of their documents to protect their financial privacy and ensure fiduciary accountability via Escrow Companies

This basic REO purchasing overview is provided as guide and may not be all inclusive. Certain issues, terms or circumstances may vary the REO purchasing.