There are a few things you should know about buying a bank-owned property since the procedures may be different than those used in buying other types of homes. You will find, however, the procedures are quite efficient and convenient.

• Anyone can buy a bank-owned home
  Bank-owned homes can be purchased by anyone. Many homes are affordable to low and moderate income purchasers.
• Bank-owned homes are sold at market value
  The buyer may offer any price, but the seller will only agree to offers that provide an acceptable return. Price reductions may take place later if the home does not sell.
• Bank-owned homes are sold "As Is"
  It is important to understand that these homes are sold in "as is" condition. This means that the condition of the home when you see it is what you will be buying. The seller makes no warranties, does not guarantee the condition of any home, and does not verify that it complies with any local code or zoning requirements. You must make any necessary repairs after the purchase. It is important that you get a Home Inspection by a licensed professional prior to closing on the sale in order to understand the condition of the home.
• Deadlines must be met
  In order to be fair to all purchasers, the seller has imposed timetables that must be met or your bid or contract will be cancelled and the home returned to the market. Once your bid is acknowledged as the acceptable bid, for example, your agent must have the correct contract package delivered to the appropriate regional office within 48 hours or the bid will be cancelled. Generally, closing must take place within 45-60 days.

Making an Offer on a Bank-owned Home

• Offers must be made through a licensed real estate broker/agent
  If you want to make an offer on a Bank-owned home, you must bid through a licensed real estate agent who is registered on BidSelect, the offer management system First Preston utilizes. You can find a list of agents who have registered on BidSelect by clicking on " View Property Listings ", which takes you to the bidding site. Then look in the section entitled "Find a registered broker/agent."
• How to find a Bank-owned home
  You should contact a broker as instructed above. These brokers can access a list of our available properties from the MLS, which contains detailed information on the home. You can also look at available listings for your area here on this site under " View Property Listings, " then check with your broker for more information about the house.
• Offers must be submitted through our online bidding system, BidSelect.
  Offers are made via computer through the Internet. The electronic bids are stored in the computer system and, at the appropriate time, calculations are automatically performed to determine the highest offer to the seller. Before submitting an offer, the buyer must complete and sign a sales contract and all required addenda. In the event your offer is acknowledged as the " accepted bid," the signed contract package must be delivered to the First Preston Denver office within 48 hours from the time of the bid ackknowledgement.
• The highest bid is acknowledged by First Preston to your broker, who is notified to deliver a correct signed contract package to the appropriate regional office within 48 hours. If the contract is not received within 48 hours or is incorrect, the home will be returned to the market or acknowledged to the next highest bidder. All acknowledged bids are subject to cancellation for prior sale, electronic error, and other conditions (see Disclaimers). An acknowledged bid does not constitute a sale; only a correct contract that is executed by First Preston and returned to your agent allows you to proceed to closing.
• Initial Listing Period
  The initial listing period, which is generally the first public listing for bank-owned properties, is seven days.
  
  All offers received during the first seven days of this initial period, are considered to be received simultaneously. On the first business day after this period, these bids are reviewed to determine the highest acceptable offer.
  
  If there is no acceptable bid, bids are reviewed on a daily basis. Bids received at different times during the day will be considered received simultaneously, and the highest acceptable net bid will be acknowledged on the date opened.
• Subsequent Listing Period
  If a property remains unsold, First Preston may re-analyze the case and the price may be reduced. Bids will be reviewed daily and the acceptable net bid that offers the highest value to the seller is acknowledged.
• Contract must be received within 48 hours
  If your bid is acknowledged, your broker must deliver a correct Sales Contract, along with other required forms and Addendums signed by you, to the First Preston office within 48 hours. You will be required to submit proof of financing commitment from a lender or proof of cash to close, along with other items. You should be working with your broker to put the required items in place before you bid on a home, so that you are ready if your bid is acknowledged.

Closing on a Bank-owned home

• Closings are generally within 30 days and held at the assigned closing agent office
  After your contract has been received correctly, it will be signed by First Preston on behalf of the seller and returned to your agent along with a contract acceptance letter. Once you are ready to close, you and your agent must schedule the date with the title company indicated on the letter, who also receives a copy of your contract. First Preston does not set the closing date; it is up to you. Your broker can assist in setting the closing date with the assigned closing title company.
• Return of Earnest Money
  When you submit a contract, you must deposit earnest money with your agent – prior to the submission of your electronic offer. The correct earnest money deposit is as follows:
  • $1,000 for sales prices below $100,000
  • $1,500 for sales price between $100,000 to $199,999
  • $2,500 for sales prices between $200,000 to $499,999
  • $7,500 for sales prices at $500,000 and above
  Please contact First Preston as soon as you know the sale is not going to close so the home can be returned to the market. Requests for return of earnest money deposit must be in writing and accompanied by supporting documentation to justify a refund according to the sales contract and addendum to the contract. All requests for earnest money must be submitted in writing immediately to First Preston.
• Extensions of time
  Contract extensions may be granted at the sole discretion of the seller based on the facts surrounding the extension request. The Extension Fee Schedule is included in the Addendum to the Contract.