Foreclosure in Holly Springs>Question Details

Ann, Home Buyer in Holly Springs, NC

What happens when Indymac won't sign offer to purchase and addendum when closing is supposed to be tomorrow?

Asked by Ann, Holly Springs, NC Tue Aug 17, 2010

We accepted a counter offer from Indymac for a foreclosed home; it's taken almost a month to even get this far with them. Closing was set for tomorrow, but they still haven't sent the papers back. What does this mean? No deal? Are they going to keep our deposit? The listing agent can never seem to get any information out of them, which I find quite odd. They basically just ignore her inquiries. How can they sell for them if they won't comunicate with them? We have to be out of our home that we sold in 4 weeks. No sure what to do. BTW - this is a cash deal, no financing involved, which makes this whole scenerio seem even more ridiculous.

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ANN the first thing to note is if you do not have signed docs from the seller, you do not even have a contract yet and should not have proceeded without the purchase agreement and all bank docs signed by the buyer and seller. the listing agent has to have a contact to speak with, it is possible to have tio wait a few days for signatures but not a month, not for a signature. Something is wrong here. Do you have an agent? if so they have to stop everything and get an answer. If not, you have to go to the listing agents and have them try calling, emailing, instant message anything to reach a live person and get an answer. lastly if you do not have a ocntract, they should not have collected your deposit never mind deposited it yet never mind keeping it. If all else fails, meet with an attorney to get to the bottom of this.
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0 votes Thank Flag Link Fri Dec 2, 2011
We wish you the best of luck, but dont hold your breath.

For every action or response figure at least two weeks in-between.

Normally, once all the contracts are signed Indymac and other banks request at least 90 days POST signing to close, and normally close in 45-60 days after everything has been signed.

Cash deals have nothing to do with it. It is just there paperwork tail and processing time.

On another note, cash purchases can take longer then FHA financed purchases in some cases.

Cash purchases tend to indicate an investor. Investors are not in Favor with the Neighborhood Stabilization act of 2010. ie Owner Occupied with FHA backed Loan takes all precedents in buying bank / Government owned REO properties.

Good Luck
0 votes Thank Flag Link Fri Dec 2, 2011
Hi Ann. It's very sad to hear that you have to be out of your home in 4 weeks. Rotten.

You're stuck with a bank that was bailed out by Senor obama. Although he never managed any business in his life, he's now given BigBanks the keys to our financial present and future. Here's what's really going on:

The banks can do whatever they want. They are thieves, stealing from each an every one of us with the blessing of the US government. They should have been forced into insolvency and made to close their doors, but instead they are $%#* the American taxpayers, each and every one of us.

GOOD LUCK and I hope things work out for you. Watch the video, it'll shed some light as to what's really going on.

Scott Miller, Realty Associates, Boca Raton, FL
0 votes Thank Flag Link Tue Aug 17, 2010
Since you are paying cash, you won't have to wait for a lender to do their 'thing'. Normally, I would tell you to set the closing for at least 45 days out. But, your attorney will still have to do titlework, and you SHOULD get an appraisal and a survey.
Don't set the closing date for any sooner than 21 days out. 30 preferable in this case. You will have to have an addendum for the extended closing date - and as mentioned before, Indymac will have to sign this.
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0 votes Thank Flag Link Tue Aug 17, 2010
Ann, you should already have an attorney lined up to do the closing anyway. Foreclosures do take an incredible amount of time, but not 2 weeks to get signed contracts back once a number is agreed upon. If you agreed upon a number on Aug 3rd, you should have had contracts within 4 or 5 days. That being said, it could have sat on someone's desk too long. Have the listing agent "talk" to someone tomorrow and insist on finding out where the signed contract is. Make sure that the final contract is signed with a realistic closing date, or have them sign an extension, which most banks don't want to do.

Typically in foreclosure deals and short sales that we've seen, part of the addendums that the bank has you sign also states that once you go past the actual closing date, you will be charged X amount of dollars per day (per diem) until it closes.

So, first make sure that you do have a deal. Make sure that the signed contract is on it's way back to you by actually talking with someone at Indy Mac who has their hands on the paperwork. The final "signature" person that is assigned to put the final signature on contracts. They all have a different name for this person.

Then make sure that there is a realistic new closing date, that gives you time to complete title work and necessary due diligence to complete the transaction, whether that means that they have updated the closing date or signing an addendum.
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0 votes Thank Flag Link Tue Aug 17, 2010

You asked about your earnest money in your first post.

Where is your earnest money? Did you give it up without a signed contract?

Welcome to the world of dealing with banks, particularly banks that crashed and are being serviced by another bank.

I don't really push people to have a Buyer's Agent, but this sounds like an instance where you could have used good representation.
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0 votes Thank Flag Link Tue Aug 17, 2010
Let me be more clear. We made an offer for a home owned by Indymac. It took them more than a week to come back with a counter offer. We accepted. Then it took over a week again for them to send, through the listing agent, another offer to purchase and contract with the new purchase price, and the addendum 'A". We signed and initialed the offer to purchase and contract and the addendum, and the agent sent it back to them the same day, August 3, along with the earnest money deposit they required. The closing date on the contract was for tomorrow, August 18, but they haven't sent the paperwork back to us yet. The closing attorney said they have to wait for Indymac to sign the papers before they can do a title check and so forth, so there's no way we're closing tomorrow. I hear everybody say they're terribly slow, but what if the closing date passes? Do we just wait, or do we just get an attorney as suggested? Is this common with Indymac to not respond by closing date or does this mean the deal is off, even though I know it technically wasn't an actual "deal" since they haven't signed yet.
0 votes Thank Flag Link Tue Aug 17, 2010
If you do indeed get a signed contract, make sure to execute an addendum which will extend your closing date. Then, of course, it could take another 4 weeks to get that back.

It is up to an attorney to answer, but since you don't have a contract in writing, I don't see how they can keep your deposit. Though, I am wondering why they have your deposit without a signed contract.
0 votes Thank Flag Link Tue Aug 17, 2010
My first question would be how are you this far into the transaction period and not have signed contracts? One of the first things I normally do, especially when dealing with banks and foreclosure deals, is get one steady contact with a direct number to reach them and a direct email address. This can take the first few days during the offer process, but normally the listing agent for the property has an online system where they input offers and counter offers to make it easy.

At this point, you need to get a copy of a signed contract. No bank will even consider selling a property without a signed contract. And if you can't seem to get a copy of a signed contract, I would have your attorney consult with your agent and/or IndyMac to determine status.
0 votes Thank Flag Link Tue Aug 17, 2010
It means you may need legal counsel to tell you the status of your EMD.

Did you give your EMD check to the Listing Agent without a contract?
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0 votes Thank Flag Link Tue Aug 17, 2010
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