Foreclosure in Warroad>Question Details

John Andrew, Home Buyer in Warroad, MN

I paid for my foreclosure in full at purchase. 40 days later, the title is still not mine, and no questions are being answered. What can I do?

Asked by John Andrew, Warroad, MN Fri Jun 3, 2011

I was in a very advantageous position at purchase; the property is in good condition, and very close to my place of work. However, it is 40 days past the date of purchase, the property still has not reached closing, and I've been living out of a suitcase at my sister's place. I have paid the full price of the property outright, with no contingencies. I have done everything expected of me in the deal. My realtor tells me the closer in the process has called and said they've "hit another snag," and won't be bothered with any further questions. Is there anything I can do? Any help would be greatly appreciated!

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5
Ho John,
I feel the pain every week. These REO property mortgages have often been pieced out to different investors and all of them require two or three signatures to look at your deal. This takes time and they are usually not considerate enough to tell you why. Ask your Realtor to try to have a closer relationship with the asset manager handling the property for the bank. Usually they will send a weekly (or so) email update.

I am in the middle of a deal now where new carpet was installed in the property. The mortgage insurance company stalled the deal because the carpet supplier and installer had not signed lien wavers even though the statutory time limit for filing a lien was long past.

Hang in there John. It will be worth the wait!
0 votes Thank Flag Link Fri Jun 3, 2011
When purchasing a bank owned property your contract will have a statement that it is conditional on having marketable title. Unfortunately it is not uncommon for title problems to come up at the last minute. It sounds like this is the case.

I wouldn't be hiring an attorney just yet as he/she can't really do anything other than bug the closer. And that may not work in your favor as she wants to get this done as well. Yes, this is a horrible snag to hit but it does happen. And if you haven't closed yet you haven't paid full price but rather have agreed to pay full price at the closing. Be patient if this is a house you want. The bank doesn't want to lose you but at the same time has to be able to give title to you. Have your agent stay on top of what is happening. Try and find out just what the snag is and what kind of time frame you are looking at.

These things do usually work out just fine. The wait is no fun but the reward...

Steele V. Propp
Bank Owned Homes Specialist
0 votes Thank Flag Link Fri Jun 3, 2011
John,

Patience friend. It sounds like you bought an REO, and are 40 days from when you wrote the contract. When was it supposed to close? The reality is that the price you pay for getting a good deal is dealing with the hassles that a bank is going to put you through. Sadly this is often how they do business. You have the option of canceling the purchase agreement - consult your agent and attorney for ramifications - or waiting it out, but ultimately you are dealing with a bank and you can't do anything to get them to move any faster.

Cameron Piper
Coldwell Banker Burnet
licensed in MN
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Fri Jun 3, 2011
I need more information. You purchased an REO property at full price and it was supposed to close when?

I will say that your realtor should be able to tell you the reason why it is not closing. Something is not right with the closer.

You can always email me directly

Chris
651-307-7663
chris.block@dhbuyers.com
0 votes Thank Flag Link Fri Jun 3, 2011
At this point it may be in your best interest to consult with an attorney, he/she can best advise....
0 votes Thank Flag Link Fri Jun 3, 2011
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