12-27-2012 09:22 AM
We were supposed to close the 21st due to some slow communication with our processor we rescheduled for the 28th (tomorrow).
Our lender has rushed their end, the USDA gave us commitment in 2 days, lender gave our CLEAR TO CLOSE last night to all parites. Our property is a fannie mae REO (homepath) now their lawyer is saying they cannot make the 28th and are extending our closing into next year. Does this sound right? Wouldn't they be prepared a day before closing?
We signed the extension at 8 am but now they have not responded to any emails saying if they are trying to meet tomorrow's closing day or if it's officially off. I hate it how you are just are their mercy. We are 100% clear on everything. Has anyone experienced seller delays in an REO transaction with no real reason just "we are not ready" ???
12-27-2012 09:41 AM
I share your frustation. We're currently at the mercy of "we're not ready" with our lender too. It's not an REO, but we have an impatient house flipper for a seller that is demanding thousands of dollars if we don't close by the 31st. We're trying everything to get our lender moving, but they just seem to keep going at a snail's pace. From what I hear, there are a lot of loans trying to close and every step with the lender is a "get in line" type of situation as there are other loans ahead of ours in the process.
12-27-2012 10:17 AM
It's just frustrating to be at others mercy. The lenders I sort of get since they have the LO, the processor and the underwriters all in the process everyone needs to be together in this. Everyone bent over backwards to get closing on the 28th as they said it was "of the essence" this property close by years end.
We have already scheduled painters, deliveries, moving trucks, our current landlord given notice etc etc. We made sure to schedule these with enough time in case closing was delayed a day or two. Now if we delay one we must delay all. They don't want to schedule for the 31st either. The 11th it's their target date. Who's ever heard everyone is ready BUT THE SELLER!?!!?!? Even for REO property this sounds ridiculous.
12-27-2012 07:27 PM
It is typical for an REO property to not be ready to close ontime. It is difficult for them to meet a 30 day close even if the buyer is paying cash. It takes them forever just to get organized enough to actually sign off on the contract paperwork much less get clear title. I do a lot of REO's and as an agent I have had to stay on top of the title company daily to get it to close on time.
Most of the time the seller blames it on the title company. Yet, the title companies that close these transactions are either owned by the lender or the lender has a large ownership interest in the company! They move very slowly. Your agent should have warned you that the seller (fannie mae or any of the lenders) has difficulty meeting closing dates and title commitment dates. In fact, when you purchase an REO property, the lender requires anywhere from 24 hrs to 72 hrs after closing before they will let you have possession of the property.
You will need to reschedule your vendors to come after you close and have possession.