Foreclosure in Chicago>Question Details

Emeeks, Home Buyer in Chicago, IL

how long does it take to buy an foreclose home when paying with cash?

Asked by Emeeks, Chicago, IL Tue Aug 30, 2011

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Homes that are owned by the banks are ready to close as soon as the buyer is ready. In s cash transaction I can close most in a week to two time frame from date contract has-been approved and accepted. Dutingvthst time period title is being ordered,final water bill is ordered,and buyer inspection (10) days normal for Fannie contracts,is being done by buyer.

If you are serious about buying then find an agent whos the process.

I would be glad to help you
0 votes Thank Flag Link Fri Sep 2, 2011
I forgot to mention one important issue. The foreclosure process varies from state to state, as well as the whole real estate transaction. This is why it is important to be careful when giving somebody an advise, because the answer would vary from state to state as well. For example, here in Illinois we don't "put property in escrow". Also, our foreclosure is a judicial process and the judge has to approve the foreclosure sale, also called here in Illinois, sheriff's auction. Also, we are a redemption state, which means that even after the sale, the previous owner might redeem the property within 30 days. In any circumstance it is a good idea to consult an attorney, before making any legal decisions.
0 votes Thank Flag Link Thu Sep 1, 2011
There is no general rule and it might take a few weeks or even several months. It has nothing to do with the fact that you are paying cash. In most cases, you would be able to close in about a month, though. The reason why it varies, is because, the lenders are not always ready to close, due to Title problems and they need to clear them first, before they can close. Also, it depends if there is a multiple offer situation.. It will definitely slow the whole process. Visit my website for more resources.
0 votes Thank Flag Link Thu Sep 1, 2011
Hello Emeeks
If the home is on the market and the offer is in cash, it can close as soon as you lift the inspection contingency. Cash transactions are typically very fast. If the inspection goes through and their are no repairs, I would say as soon as possible. Some banks need time to sign and review the contract so that could delay it a bit but their is no financing to worry about.
Good luck
Heather
0 votes Thank Flag Link Wed Aug 31, 2011
If the foreclosed home is already out on the market -- it shouldn't take you very long to actually close on the escrow if you're paying with cash because a lot of the escrow term is taken up with the actual loan approval process and potentially dealing with any appraisal issues, title issues, etc. I've had cash buyers close on bank-owned homes in less than 7 days once they have an inspection done and conduct all their due diligence.
0 votes Thank Flag Link Wed Aug 31, 2011
Sadly, almost the same amount of time as it would take you to procure financing. If you walked into the REO department with a satchel full of money, title insurance, an FBI background check, and free popcorn, it will still take the same amount of time! I think another bailout would really help speed things up....
0 votes Thank Flag Link Wed Aug 31, 2011
You can close when title comes back and/or you've recieved your temporary CO from the local municipality. Most lenders require you to apply for a obtain a CO or temp CO before you can close (if required by the town). If you have cash, and depending on how quickly the town issues the CO, you can close very quickly. These are the main things that I see here that take the most time on cash deals. It would be best for your offer to state ON or BEFORE 30 days. That's plenty of time to get the title work done and if the town takes longer to issue the CO, it is a requirement of the seller and therefore not your fault the closing can't take place (so you're not breaching the contract and being charged per diem every day after closing).
0 votes Thank Flag Link Wed Aug 31, 2011
That all depends on the bank that owns the property. Some respond quickly and others do not. With a cash offer some banks will ask that you close within 30 days or less once the contract and addendums are signed off by them.

If there is a home you are interested in ask your agent to look into that. If the listing agent has done business with that bank or the addendums are online they may be able to answer your question for that specific property.

Good luck!
0 votes Thank Flag Link Tue Aug 30, 2011
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