T4, Home Buyer in Pelham Gardens, Bronx,...

can you close on a reo property in less than 30 days if you have your loan and money in order?

Asked by T4, Pelham Gardens, Bronx, NY Mon May 31, 2010

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7
Yes you can. HOWEVER, BUYER BEWARE. Most REO contracts can't be negotiated. I do say MOST. I have been fortunate to negotiate some myself, however, I have also had firms representing the REO seller, refuse to accept a rider EVEN when the contract terms do not make sense and are contradictory.

HUGE problem in dealing with REO's is that they really are made for the all cash buyer. Contract terms are harsh and filled with "Time is of the essence" clauses, which in short mean close by this date or lose your downpayment.

If you are pursuing an REO and are seeking financing as well, I recommend offering as little a downpayment as possible since the DP is what is at risk in a default. I assume if you are inquiring about a 30 day close, the terms of the contract MAY state in sum, you are free to get a loan, but the requirement for you to close is by a date certain and therefore, your downpayment may be at risk.

Of course if your attorney is successful in negotiating a fair contract, you do not have to worry, but as I said, in my experience, the majority of these deals can't be negotiated for more favorable terms.
1 vote Thank Flag Link Mon Nov 12, 2012
The closing time, will invariably be determined by YOUR LENDER.
Unless you contractually obligate YOUR LENDER to pay penalties if they miss the closing date, they remain in the driver seat.
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The lender a buyer chooses has significant influence on the competiveness of their purchase offer and imposes significant cost to the seller should the lender go goofy.
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Natorious lenders like Chase, Bank of AMerica and Wells Fargo have a well established track record regarding the folly of a 30 day closing.
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Regarding your specific situation, more information would be needed. Your agent is your best resource. If you ignored their lender suggestion, what happens regarding the 30 day close is on you.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
0 votes Thank Flag Link Tue Oct 22, 2013
Hello,

30 days is a very short time period it is not impossible but I can assure you that it is extremely unlikely. I have closed homes in 27 days as regular sales, the fact that the property is an REO will most defiantly take it over 30 days in most cases. If you have any further questions feel free to call me directly.

Sincerely, 
Antonio Sanchez
Exit Realty Search
Licensed Real Estate Salesperson
3928 E. Tremont Avenue
CELL: 347-320-0673
FAX:    347-202-4966

antonio@exitrealtysearch.com
http://www.lovingmytown.com
0 votes Thank Flag Link Tue Oct 22, 2013
Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.


Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
0 votes Thank Flag Link Wed Sep 12, 2012
It's possible, but do consult with your attorney, he/she is your best source of advice as it relates to your specific situation.
0 votes Thank Flag Link Tue Jun 1, 2010
T4,

Yes, it is possible. You will have to hustle and get your inspections, appraisal, full loan approval, etc, but you can do it. We have in numerous cases.

Good luck.
0 votes Thank Flag Link Mon May 31, 2010
T4, Yes you can provided there's no issues with inspections or the property is not a short sale or foreclosure. Dave closed a loan in 2 weeks once rare but it happened.

All the Very Best
Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Mon May 31, 2010
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