Ok, well where do I start. My fiance and I made an offer on a brand new home that had gone into foreclosure.
The home was bank owned when we made the offer back in the beginning of March and the bank accepted our offer. Our purchase and sale agreement gave a closing date of April 15th and to be prepared we had everything ready, homeowners, water test done, the house was dewinterized, etc. April 15th came and went and we were given an extension to May 30, which has also come and gone and now the bank is telling us to give them another 3-6 more months before we even think about closing. Apparently there is some lein on the house that the bank is trying to get released by the IRS, but our bank appointed lawyer informed us that really no one has taken any action over at the bank as far as clearing it up so we can close on this home. THey have also been holding on to 10,000 in earnest money, which is doing nothing, where if it was sitting in my savings or a cd, I would at least be colleting interest. Is there anything we can do besides calling every single person involved every single day?
As you found out "forclosure" is sometimes not the best option to go with. Developers of that or similar homes may have not been diligent in paying taxes or their subcontractors so the home may have a bunch of liens that need to be cleared up before the closing can happen. Further, the bank may take it's time to process all documents as they want to be absolutely sure nothing comes back to them later.... so I would recommend that you either wait it out or just start looking for another home. Think about this: 3 -6 months you can find a nice home, close and move in without having to deal with issues that you have no control over with a current deal.
Best of luck....
Hi Nicole,
Unfortunately, you've discovered the ugly side of REO's. Without seeing your contract, I'd bet you'll find something in it that gives the bank all the time it needs to without much liability. They tend to write that verbiage on their addendum page. Given that, your choice is to hang in at their mercy(with your deposit sitting in escrow), or cancel out and get your money back. Another point to beware of..Sometimes the escrow company will charge cancellation fees against your deposit,regardless of who's lack of perfomance the cancellation was due to. If you have any other questions, my contact information is in my web link below. Good Luck.
Nicole,
Wow! Your situation covers a slew of issues and it would be a disservice to answer them in a forum such as this. Your most pressing need is to find an attorney to represent your interests. If you want to bounce this off a real estate professional, and you are not currently working with a real estate professional, you can feel free to contact me via my website below. I wish you the best of luck.
Regards,
Tim Soper
RE/MAX Pinnacle
Shorewood, IL
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