The initial forecast for getting this one done was clear skies. Then the cloud showed up and put things on hold - for months.
I have a transaction that has been pending under contract for months now. We went under contract on 2/29/12 That was 95 days ago. My buyers are investors, and they have commited to purchase at least ten properties ASAP. Their strategy is longterm rentals.
This particular investment property is in a good community for drawing renters. It is a single family home, three bedroom, two and half bathroom, with a two car garage. The HOA takes care of the landscaping which is a blessing in my humble opinion.
After going under contract, we were expecting to close within a few weeks. But here comes the 'pop up' - the unexpected situation that impacts the timeframe for closing. The property is a foreclosure. The foreclosure auction took place in January 2012. After the foreclosure auction was completed, the property went back to the bank. The bank is responsible for getting the title updated showing the foreclosure deed.
When we went under contract and planned the closing, the POP UP showed up. I commend my buyers because they have hung threw three contract extensions as we all patiently awaited the updating of the title with the foreclosure deed. That finally happened on Friday, and now we are proceeding with closing in the next week. Thank God for the sunshine!
Lesson Learned - when contracting on a foreclosure REO in Atlanta, try to determine in advance of binding agreement if there are title problems that will delay closing. You can do a basic search at the county website and a more specific search at the Clerk of Court website. And be prepared to wait.
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