How to Write a Letter of Intent (LOI) For a Bulk REO Purchase. If you are looking to purchase a bulk REO(Real Estate Owned) from a seller, you have to provide a Letter of Intent (LOI) to the seller as a first step. An LOI should be written by the buyer and makes the first impression on the seller.
So let's sum things up:* The LOI and similar documentary terms, are non standard, confusing, and lead to ambiguity. * Documentary ambiguity is referred to in trade law as a condition "The Battle of the Forms" in which confusion from contradictory and ambiguous forms and documents damages the transaction. This should be avoided. * To seasoned corporate traders and bankers, using terms like "Letter of Intent" is the mark of amateurs. * What you properly want is an RFQ, request for quotation, from a seller or supplier. The seller may then reply to your RFQ with a quote OR full offer if they wish.