Titling could be the hold up. I have seen it where homes are being sold by one lender and the title is reading that someone else is on title by the time you make your offer. Banks sell the homes to other companies to handle their foreclosures sometimes making the process a major pain to clean up who is really in control. As far as waiting 3 months, that is 2 months too long. The issue at hand should be resolved by now or it probably never will. Feel free to contact me for other options for financing this property or starting over with a new home. An experienced loan officer can be the key to closing a loan or not closing and I have 8 years under me. I am a member of the Better Business Bureau and the Branch Manager at Equity 1 Mortgage. Call me at 816-547-1600 to discuss.

Thu May 1 2008, 18:50

Shannon -
What the other REALTORS said is all true. When you're working with the bank on forclosed properties all the rules change. They really are trying to sell the property and recoup as much of their loss as they can. Not knowing all the particulars on your particular transaction I can't really give you firm advise on staying or going. If you're going through a REALTOR and it is a local bank see if you can make an appointment (together) to see where you are in the loan process. Often physically showing up helps push things forward if you are gracious and just ask to see who's doing what and for a time line. If you're working with a bank long distance you're at their mercy. Only you can look at the property and determine whether the hassle is worth it. If you've gotten a wonderful deal on the house and can wait, hang in there to the end. If it's not that great, move on. Just know that there is always the possibility that you can hang to the end and still not get the property. Doesn't happen often but it does happen. Good luck and keep after them if it's in your best interest.
Trisha Lee REMAX Boone Realty, Columbia, MO

Wed Apr 30 2008, 15:17

First, let me say that every contract is different and all I can do is speculate a few possible reasons based on personal experience as to why you haven't closed yet.

Banks have a ton of foreclosure homes on their books and they aren't making any money because people have stopped paying their mortgages. This has led the banks to lay off people who process foreclosures and contracts. So you have a few extremely overworked people at the bank trying to process tons of foreclosures. Then, usually there is a board of bank officials, not just one person who has to make decisions on each contract. So getting a signature from a bank official is nearly impossible. So each time you extend, someone at the bank needs to sign and by the time they sign, you've blown another closing deadline.

Assuming you've been through inspections and everything is agreed to, it may just be that the people at the bank haven't processed everything and every time you extend, your file goes to the bottom of the pile.

Is there a Realtor involved in your transaction? What has he/she been told?

I have been involved in a bank foreclosure home that did take over 3 months to close because the bank moved and all their paperwork was in a jumble and no one could find anything. I think they even lost their heads in the move!

It's up to you if you want to keep at it. If you are getting a really good deal, you might want to stick it out. If it's becoming too much of a headache and you just want to get out and move on, then you should not sign another extension.

The fact that you have not been told why the bank can't close on time is suspicious. It shouldn't be your loan because your lender would be able to tell you if FHA doesn't want to lend on this particular house.

Wed Apr 30 2008, 14:51

The delay in the closing process on an REO property has to do with the bank, the owner of the property. As with short sales, lenders really aren't equipped to sell property. They know how to lend money for loans.

Some lenders are getting better at handling REOs, and there's general agreement that REOs go more smoothly than short sales. Your Realtor should have informed you of all this going in--that REOs often don't go smoothly (and short sales seldom do).

If you want the house and it's a good value, then stay with it. You may eventually end up with the property. (Note the operative word "may.") If you don't want to proceed, check to make sure of any penalties you'd incur by backing out. Then make your decision.

Good luck.

Wed Apr 30 2008, 14:50

THE WAY THINGS ARE GOING IN THIS MARKET- THE BANKS THAT OWN THEM HAVE TAKEN A HIT AND THEY NOW HAVE TO BE IN A BUSINESS THAT THEY REALLY AREN'T IN. OFTEN TIMES THEY SYTETCH THINGS OUT TO STACK OFFERS AND SEE IF THEY CAN GET MORE MONEY. AT THIS POINT I WOULD SAY GIVE THEM ANOTHER TWO WEEKS--- IF THEY STILL DO NOT GET TO THE CLOSING TABLE-- TAKE THAT WALK. i KNOW THAT IS HARD ESPECIALLY SINCE YOU HAVE BEEN DOING ALL OF THE WAITING AND THEY JUST STALL.
FHA OFTEN TAKES A LITTLE MORE TIME AND PAPEWORK THAN A CONVENTION AL MORTGAGE- BUT THE BANK IS STALLING TO STACK OFFERS AND SEE IF THEY CAN GET MORE MONEY FROM SOMETHING THAT THEY HAVE ALREADY LOST MONEY ON.

IT IS REAL EMOTIONAL BUYING A HOUSE-- BUT AS SOON AS YOU FIND IT-- TAKE THE EMOTION OUT OF IT AND GIVE THEM STRICT TIMELINES AND THEN STICK TO THEM-- IF NOT MET THEN WALK. IN THE END ALL THE BANK OWNED PROPERTY CARES ABOUT IS THE BOTTOM LINE DOLLAR
GIVE EM TWO MORE WEEKS AND WALK IF YOU HAVE TO-- MAKE SURE YOU ARE LETTING THE BANK KNOW THAT EVERY DAY THEY STALL THEY ARE LOOSING MORE MONEY--AND IF YOU HAVE A CONTRACT LET THEM KNOW THAT YOUR MONEY IS APPROVED.

HARD TO DO BUT TAKE EMOTION OUT AND WALK IF YOU HAVE TO

Wed Apr 30 2008, 14:47