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REO Acquisition Program Timeline


The following Timeline is a best *estimate* of the timing of the PIP-West REO Acquisition process from the submission of the completed paperwork to PIP-West, to the closing of the purchase transaction.

Note 1: These are *approximate* times and are subject to change. PIP-West will incorporate into this timeline any variance observed in future REO transactions.

Note 2: These time estimates are intended to correspond to a typical transaction. Also noted are areas of potential delay which would in turn delay the closing of the purchase transaction.

1) PIP-West receives the Buyer’s paperwork and submits it to the Inner-Bank Liquidator for processing.
(2 days – thus 2 days total; potential delay if funds aren’t ready for proofing)

  • PIP-West does initial Proof of Funds within 24 hours of getting paperwork, unless instructed by Client to wait longer for funds to be in account.
  • Funds must remain in account for Lender to also perform Proof of Funds.

2) Liquidator sends NDNC & LOI to one or more Lender(s) and orders the tape/list from the one Lender that can provide sufficient properties to exceed the LOI capital amount, and that can provide the best price. (1-2 days – thus 3-4 days total, or longer if LOI criteria is too narrow)

  • Once the Liquidator receives the NDNC & LOI, the clock starts for the 14-day due diligence period.
  • Once Lender receives the NDNC & LOI, the Lender performs another soft Proof of Funds within 24 hours.
    (2nd proof of funds)
  • Liquidator looks at multiple lenders to find those that can provide sufficient properties to exceed the LOI purchase amount, and chooses the Lender that provides the best price.
  • Getting the tape normally takes about 24 to 48 hours. The time to get the tape could be longer (even a week or more) if the LOI criteria is very “narrow”, making it difficult to find candidate properties from the Lenders.

3) PIP-WEST receives the tape and verifies the values on the tape within 24 hours to make sure that they are reasonable and good (e.g. not loan amounts which are overvalued).
(1 day – thus 4-5 days total)

  • This is a PRELIMINARY Validation to determine whether or not we move forward.
  • The nonrefundable 1% PIP-West fee is *potentially* earned to the extent that there are sufficient properties on the tape that meet the Buyer’s specified LOI criteria as per the Lender’s statement of property value on the tape, however the *final* determination will be made once the property value and state of repair are substantiated in the due diligence process.

4) PIP-WEST delivers tape to Buyer to CHOOSE candidate properties.
(1 day – thus 5-6 days total, or longer if Buyer requires more time)

  • Based on the Lender’s statement of the Property Value and State of Repair for each property on the tape, the Buyer identifies candidate properties on which PIP-WEST will perform due diligence.

5) PIP-WEST initiates due diligence on Property Values and State of Repair for Buyer’s property selection, either directly or via a BPO or other process that is reliable and true.
(8-9 days – thus a total of 14 days, or longer if PIP-West due diligence and/or optional Buyer due diligence requires more time)

  • The Buyer optionally may also perform due diligence in parallel.
  • Additional time for due diligence may be requested if needed (e.g. a large number of properties, etc.).
  • Permission for PIP-West (and/or the Buyer) to enter the property is provided by the Lender, which can be based on current occupancy, or other factors. The Lender will either permit entry to a given property or not, and will not make any special arrangements for entry.
  • The nonrefundable 1% PIP-West fee is earned to the extent that there are sufficient properties on the tape that meet the Buyer’s specified LOI criteria when the Property Values and State of Repair are substantiated in the due diligence process. If the full Purchase Amount is not yet fulfilled/used, the Buyer may obtain additional lists to complete the property selection for purchase.

6) PIP-WEST prepares and submits to the Liquidator the final OFFER TO PURCHASE for the Buyer based on their final list of properties to purchase, and the Lender initiates the “closing process” for the locale (e.g. escrow, closing attorneys) complete the purchase.
(14 days – thus a total of 28 days, or longer if delays occurred at various steps above)

  • The Lender wants to close within 14 days (so that the total time from submission of the LOI is between 30-45 days).
  • The Offer to Purchase contains exact titling for all listed properties, including multiple “titlings” for the case where PIP-West is the “Buyers’ Mandate” for a single purchase for multiple Clients.
  • Lender opens the escrow or initiates the “closing process” with closing attorney, whatever is typical for the locale. The transaction proceeds like a standard closing like any other.
  • The only steps during the closing period are essentially the receipt of the wired funds from the Buyer’s account and the transfer of the warranty titles by the Lender into the titling defined by the Offer to Purchase. There is no mortgage involved and the warranty titles have already been done.
  • In 14 days, the purchase is complete.