Letter of Intent to Purchase Bulk Non-Performing Real Estate Loans

 

This Letter of Intent for (Principle Buyer’s name) (“Buyer”) is for the purpose of purchasing in bulk non-performing Real Estate loans of the

Seller (Seller's Company's name if known) (“Seller”).   This letter shall set forth some of the basic terms and conditions of the proposed bulk purchase by the undersigned Buyer of certain Real Estate Loans owned by Seller.  The terns set forth in this letter will not become binding until a more detailed “Purchase Agreement” is negotiated and signed by the parties as contemplated below by the section of this letter entitled “Non Binding”.

 

PRICE:   The purchase price of the non-performing loan portfolio is $__________________USD.

 

PROPOSED PURCHASE PRICE:  The proposed purchase price will be _____% to _____% of the current value of the properties based on Broker Price Opinions (BPO) held by the Seller.  BPOs should be less than 60 days.

 

BPO DELIVERY RANGE:  $______________________ USD TO $__________________  USD is the actual BPO value range of the total property being purchased.

 

PROPERTY TYPE: (example; single family residential and townhouses.)

 

PRICE RANGE:  $______________________ USD to $__________________  USD is the range of pricing based on current BPO value for individual property value.

 

PROPERTY CONDITION: (example; Minor cosmetic to light rehab.)

 

OCCUPANCY: 

 

TITLE:  (example; clear title.)

 

PROOF OF FUNDS:  (examples; cash, letter of credit, financing.)

 

REQUESTED GEOGRAPHICAL LOCATIONS:  All the properties secured by these non-performing real estate loans proposed to be purchased are located in the following geographical locations:

(See Attached Exhibit “A” for geographical locations, if required)

 

TAPE DELIVERY TIME REQUEST:  Request the tape to be made available to the Buyer between 24 to 72 hours.  However, all orders are filled subject to availability.

 

INITIAL TAPE REVIEW PERIOD REQUESTED:   (example 24 to 72 hours.)

 

REFUNDABLE DEPOSIT:  (example; 10% of the purchase price to be paid by the Buyer upon beginning “due diligence.)

 

DUE DILIGENCE PERIOD:    (3 to 7 days for residential; 20 days for commercial.)

 

CLOSING:  Two calendar days after the expiration of the due diligence period the full amount of the deposit becomes non refundable.  Closing to be coordinated with title and escrow/closing attorney.

 

TITLE:  (to be determined by client)

 

ESCROW COMPANY OR CLOSING ATTORNEY:  (Name and Contact information listed here.  To be determined by the Buyer and must list contact information.)

 

COMMISSION:  Buyer shall pay upon closing of the escrow (settlement) 3% for total sales price to the agents involved in this transaction.  (4% if the total sales price is less than $30 million USD.)

 

(A BRIEF CLOSING PARAGRAPH DESCRIBING THE PURCHASE)

 

Date:

 

BY: ________________________________________________

Principle Buyer’s Name

Principle Buyer’s Company’s Name

Principle Buyer’s Company’s Address

Principle Buyer’s Company’s City, State and Zip Code

 

Principle Buyer’s Phone:

Principle Buyer’s Fax:

Principle Buyer’s Email Address:

 

BY:  _________________________________________________

Buyer’s Agent’s Name

Buyer’s Agent’s Company’s Name

Buyer’s Agent’s Company’s Address

Buyer’s Agent’s Company’s City, State and Zip Code

 

Buyer’s Agent’s Phone:

Buyer’s Agent’s Fax:

Buyer’s Agent’s Email Address: