You'd think that buying a foreclosure would be much easier than buying a short sale (which requires bank approval that can take 1-3 months), but in some cases it can be just as frustrating and time-consuming.

After looking for months, my clients finally found the perfect home, which happened to be a foreclosure. It was in perfect condition, in a great location, and bigger than anything they had seen so far. It was also at the top end of their budget and being careful money managers, they hesitated for a few days before making an offer. Luckily for them, the interest rates dropped to 5%, making their monthly very affordable.

The bidding process went smoothly and after a week of negotiations, their offer was approved by the seller/bank. Everything seemed to be falling into place and they expected to close in two weeks since their financing was all arranged. But the seller/bank said they required 45 days to close - just a formality, they said, in case any problems arose that required time to correct. Oh Yes.

We were given contacts at the title company in another city (which the seller/bank insisted we use) and contacts at the closing dept of a company that represented the seller/bank and were told, when we asked for status, that there were some title issues that needed to be resolved. After several weeks, we were told that the bank was working on a Deed in Lieu (DIL). This was a big surprise since we all thought that the bank had foreclosed and just hadn't recorded the deed yet.

As the weeks rolled by, the only update we got was that "the bank is working on resolving issues and it takes time".

Toward the end of the 45 days the seller/bank required for closing, we got a notice saying that the contract was about to expire and the buyer was required to request an extension. This seemed like a slap in the face since it was the "seller" who was causing the delay.  The buyer was getting nervous because his rate lock was about to expire and getting it extended would be expensive and require funds they hadn't budgeted.  We felt like the seller/bank wasn't telling us the real story and I was advised by several colleagues to give it up since they had horror stories of similar transactions that never closed.

About that time, I "happened" to find out that the seller/bank had already taken a DIL three months previously and had "lost" the file. Further research turned up the fact that the seller/bank's attorney had the DIL and was waiting for the seller/bank to give the OK to have it recorded. They said they could go forward if we sent them a copy of the contract, which we promptly did. We then notified the seller/bank reps what we had found out and things started moving.

It looked like it was finally going to work, but other snags dragged it out for an additional three weeks. It seemed like there was some new glitch every other day that WE had to iron out and coordinate between the seller/bank's various departments and representatives, who didn't seem to be communicating with each other. 

The bottom line is that it finally CLOSED! My clients got their dream house at a price they can afford and are ecstatic. Ideally, this is the way every transaction should be completed - with a happy ending and very satisfied clients.  Was it worth the effort? You bet! The weeks of struggle and frustration were well worth the years of happiness the new homeowners will have raising their family in their beautiful home.

Some people say, "if it was meant to be, then it'll happen". Others have the attitude, that "if they want it to be, then they'll make it happen". I tend to subscribe to the latter philosophy.  My clients had a reasonable goal and I felt compelled to help them realize it if it was humanly possible.