Diary of an REO purchase Continues

By
Real Estate Agent with Morris Williams Realty 3068477


Foreclosure SignHere we are on February 3, 2013, and still no closing;-(.  Unfortunately there's more bad news to report and unfortunately the only good news is a tiny seller concession to the buyer (if it finally closes).  I'll start where I left off:

January 16, 2013:  Clear to close received from the buyers lender!  Now the wait is on for the title agent to clear the HOA estoppel.

January 18, 2013:  HOA estoppel received and title can close as early as Tuesday January 22, 2013.  Buyer notified and closing instructions, utility turn on and she's waiting to receive final closing statement so she can make final wire transfer to title agent for closing.  5pm:  By the way....another holiday to add to the Christmas and New Year holidays we have already experienced.  January 21st is Martin Luther King Day so of course another delay:(!  

 

January 22, 2013 (nothing done on the holiday....again) @ 10:52am: I am notified via the title company that the documents will be remitted for closing on January 23, 2013.  Buyer notified and requests as late in the day as possible.  Looks like that is a definite!  Requested final closing statement a minimum of 4 times today....no avail.  Lender has sent closing package to title.

January 23, 2013:  Closing day!  No closing statement (HUD-1) for buyer yet.  It's 10am...mobile signing agent set up late last evening for 3:15 pm (to follow final buyer walk through of the property at 2pm).  Mobile signing agents are used when the title company the seller uses is not local to the property.....most if not all REO sellers use out of area title companies to get volume discounts or use title agents that are affiliated with their companies.  10:45am:  Still no closing statement, buyer needs to make wire transfer, complete her work day and make it to walk through and closing today.  Really!!!!  Finally.....closer is sending the closing statement for review!

10:46am....YES...this is REAL:  Email from closer at Title company:  "Please be informed There is a cloud on the title. The issue is with regards to the vesting and we would need a Satisfaction/Release of Affidavit of Interest of Named Party, filed 11/date/2012, in OR Book named, page named, Seminole, County, Florida. I am awaiting resolution or an ETA from the title team prior to proceeding to closing of the file."

11:06am: I receive a copy of the lien along with the title agent menitoning he's sorry for the delay.  RU Kidding me right now???  The title commitment, received by the buyer back in mid December never mentioned this at all!!!  What happened?  Why is this an issue now and why have we not been notified when this occured and is title in contact with Named Party to resolve lien?

12:35pm:  From closing agent at title company:  "The attorney is in contact with Lien holder to get this resolved, this issue was notified yesterday late, when  file was under final review. i will let you know when this is resolved."

 

Nail Biter4:15pm:  Lender writes that buyers loan rate expires on 12/31 and can be extended for $850 for each additional 15 days needed.....OMG!!!!  

4:59pm on closing day (that we now know will NOT occur today):  Title emails that they are waiting from response from the attorney and will notify me when they have one.  I contact completely deflated and exhausted buyer who is at this point not even surprised but doesn't understand how this occured.  I explain that a final title search was completed immediately prior to closing and it appears the lien was missed by the underwriter as it was file long before this contract was written initially.  

The nail biting never ends with this transaction!  My heart goes out the buyer (again and again).  

January 24-25th:  Daily emails to title (seller agent, who is typical point of contact in any transaction has never responded to my email, phone calls, text or voice messages) closing agent and their transaction coordinator to get ETA for this issue to be resolved.  Our contract expires on 1/30/13.  Title companies never respond on the weekend and I know this will be no exception and so does the buyer.  See you Monday!

Monday, January 28, 2013: Update requested and not received from title agent.  Addendum to buyer to notify buyer does not accept title in current condition.  Buyer signs and send to title at 3:59pm.  4:02pm:  Title emails me and requests closing date extension.  I email back asking for an update so buyer can decide if that is what she wants to do.  No response (not surprised).

Tuesday, January 29th: 8am email from title: Request that I prepare addendum for extension of closing date for 15 days and as anticipated no update.  Request status of action and plan to cure lien issue.  As the day goes on we are notified that they are working on the issue, no details.

Addendum being signedWednesday, January 30th (contract expiration date):  Email from title transaction coordinator to now extend the contract til 2/28/2013 which they are calling the estimated date to get title issue resolved....now I am sure we will not receive any details.  Buyer notified.  Addendum executed by buyer including seller to pay rate extension fee of up to $1800. To seller.  I am notified that because the seller will be paying to extend the loan lock rate that my commission will be reduced.  Thank me for bringing you my very well qualified to buy any traditional sale in her price range paying full commission with no extensions, unresolved liens and no additional attorney time to your doorstep so I can no start to pay for your delays!   Turnaround same day....go figure!

Again.....this property was put under contract on December 14th to close on or before January 17, 2013.  We are now almost 3 weeks past the original closing date and no end in sight......buyer will cancel the contract if it doesn't close on February 28th (or before).  Unfortunately the buyer has spent money on inspections, appraisal, survey and I have spent countless hours at inspections, talking with appraisers, inspectors, revisiting property with buyer and her family so she can decide if she is still wanting to wait.

I was hoping there would not be a part 3 but REO sales are out of my control and communication is regrettably minimal to nonexistent with the REO seller.  If the buyer wants the property and becomes connected because of blood, sweat and tears throughout the process I will stand by her until the hopefully happy ending.  The property remains a good buy and I hope and pray it becomes hers in the next 3 weeks!

Keep you posted and Part 3 there will be!

I live and breathe Orlando real estate.  I am a professional, full time agent who is passionate for my buyers and sellers needs and wants!  Please let me know how I can help you with your real estate needs;-).

 

 

 

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Topic:
Home Buying
Location:
Florida Seminole County
Groups:
Realtors®
Tags:
closing
reo
delay
extension
real estate
closing statement
hud1
diary
extension of closing

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Ambassador
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Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

You do not mention how long since the bank acquired the REO, but it does take as long as 90 days for stuff to appear on title. So, maybe this was something that was recorded against the seller a few days prior to closing. Unfrotunately, you just have to wait since title is not going to close until they get a reconveyance. I deal with these problems all the time, and I can assure that everthing will be fine and your deal will close... eventually (the key being eventually).

Feb 02, 2013 10:32 PM #1
Rainmaker
834,932
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Lynn, that REO is starting to sound worse than some of our short sales!  lol

Feb 02, 2013 10:40 PM #2
Rainer
106,834
Lynn Ganster
Morris Williams Realty - Orlando, FL
P.A.

Thanks for the vote of confidence Melissa.  Property forclosed 10/12/12.  Lien filed 11/9.  Delays make for buyer tension and this is no exception.  Have a great weekend! 

Feb 02, 2013 10:40 PM #3
Rainer
106,834
Lynn Ganster
Morris Williams Realty - Orlando, FL
P.A.

Yes Bob it definitely feels that way too!  My fingers remain crossed for the buyer.

Feb 03, 2013 02:04 AM #4
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Rainer
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Lynn Ganster

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