Good things to know about the
REO-Bank Sale Closing Process:
•1. The Seller- In an REO transaction the Seller is an out of state bank. The bank contracts a 3rd party asset management company which represents them in the transaction and approves the final escrow closing. All correspondence is done by email, below are a few items performed by Escrow to help you understand the closing process.
•2. Title Commitment (prelim) - There may be unforeseen vesting and/or lien issues on the title report that will require Escrow and/or Bank Seller to correct before closing.
•3. HOA Demands (payoffs)- Processing time to obtain HOA/Lien demands is between 5-10 days from the date ordered from the HOA management company. (There may be a possible 5-10 additional processing days to obtain lien demand if lien is not of record.)
•4. Loan Docs - Once loan docs are received, Escrow can set an appointment for the buyer the following day.
•5. Home Warranty - If Seller is paying for the buyer's HW, the demand is required before Seller will approve the HUD.
•6. HUD-1 Approval - After the buyer signs the loan documents, the REO Seller and their 3rd party Asset Company may require 24 to 72 hours to approve the HUD after ALL demands received.
•7. FUNDING - Escrow will coordinate with buyer's lender on the Bank's HUD approval before funding can occur. (Changes to the Seller's side of the HUD require additional Seller approval.)
* As in any transaction, the more communication you have with your professional Real Estate Team during the REO closing process the better the transaction will be for all parties.
This Information was given to me by my title rep from First American Title Insurance Company yesterday. If you would like any more information about buying REO (Real Estate Owned or Bank Owned) properties in Las Vegas or Henderson, NV, give my team a call.
Dana Whittaker, 702.300.7653
Broker/Salesperson
Realtor
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