We seem to be having a lot of trouble lately with closings on REO's where the bank chooses the title company. Of course every now and then we get an absolutely great-to-work-with person, but most of the time it seems that the opposite happens. I had a situation where the bank assigned the title agent about a month ago. This was a simple all-cash transaction, no lenders or loan docs to lengthen the process. The first day we got the contact information, I sent an email introducing myself and the buyers, and let them know that the buyers had their cash ready and could close ASAP. I received a very nice note back, quickly, from this agent, letting us know that she was looking forward to working with us, and that she would do her best to close this transaction ASAP! My hopes were up!
Well.....THAT was the last I heard from her. The rest was like pulling teeth. She didn't assign an escrow number until the 9th day after she got the file. It was downhill from there. She refused to answer an email or a telephone call from either me or the buyer. We had 2 weeks until the closing date on the contract when she got the file, which normally would be plenty of time for the average cash deal done by my wonderful agent, Holly, that I use all of the time in our own city. The next contact that I had with her, was her asking me to please write up an extension to close. She needed the date extended a week. We did that, and she was finally able to close on the last day of that extension. There was a per diem overage of $100 per day, for going past the original closing date. When I sent the extension in for signatures, I wrote a letter to the bank and told them that my buyers were NOT going to pay late fees because of a title company not being able to complete their job properly. The bank, when they signed the extension, rescinded that.
I had to call on the foreclosure department at the bank twice to get this transaction to close. Funny thing was, the bank couldn't get her, either, so I didn't take it personally after that! I told that bank that THIS is the reason buyers should be able to choose their own title companies! My buyers would have had their home and the bank would have had their money, and everyone would have been happy! The banks here, at this point, will sometimes let you use your own agent, but your buyer has to pay both sides of the fees. Maybe that isn't so bad after all!
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