IMPORTANT INFORMATION REGARDING REO CLOSINGS IN LAS VEGAS, NV

My title representative, Valerie Grijalva, from First American Title Insurance Company, gave us this information at our real estate sales meeting yesterday in Las Vegas regarding Real Estate Owned (REO) properties. I'm sure that if First American is experiencing this issue, the other companies are too. As an agent, I recommend using this knowledge to prepare your buyer clients and to help control their expectations. This information is very relevant and helpful for what is going on in our industry right now:

We are experiencing increasing delays in obtaining HOA lien demands from almost all the trustee companies servicing liens for the homeowner associations here in Las Vegas. The average waiting time to obtain an HOA demand from the date of the original faxed and/or emailed request is 10 to 20 days.

This can cause delays to closing and may negatively impact the buyer in the transaction. Some buyers have lost their loan lock and have had to pay an extension fee or at least lost their interest rate all together and had to lock in at a higher rate.

The sellers on Bank Owned files are often unable to close/record and "hold funds" in escrow for the delinquent HOA.  It is extremely difficult to estimate an appropriate hold amount due to the extra fees that are added in these payoffs such as interest, late fees, attorney fees, etc.

First American is taking proactive steps to avoid closing delays.  Feel free to ask your escrow officer about the status of HOA lien demands, prior to scheduling closings.