Actually, closing by February 23 would provide for a fairly standard escrow period given that you have a fully executed offer in the next couple of days (30 day escrows are very typical). The hardest part about the typical REO/bank owned purchase, however, is the expidited removal of contingencies. This is the most aspect for a buyer entering into contract on an REO property. Review the bank addendum very closely. Typically banks will have built-in removals of the inspection and loan contingencies within 5-10 days after acceptance. You will want to clearly understand what date acceptance occured in writing because that can be easily assumed in error (and the bank often considers email correspondance as written acceptance). That means that you must perform all of your inspections, get the appraisal in and receive full underwriting loan approval within the bank-specified contingency period as specified in the bank addendum/paperwork. And typically the removal of contingencies occurs automatically after the time period has lapsed unless you file a request for repairs (based on any inspections) or a cancellation. The bank is then entitled to keep your good faith deposit (or up to 3% of the purchase price). This is in great contrast to a typical purchase, where contingencies are removed by the buyer in writing. In a typical purchase, if you don't remove contingencies within the agreed to time period the seller is required to serve you with a Notice To Perform. After which you will have 24-48 hours to perform or the seller can cancel. But until you remove contingencies in writing, the seller does not have the right to keep the good faith deposit.
I hope this helps and is communicated clearly. Feel free to contact me directly via email if you have any other questions.
Best of luck... Oceanside is a great area to be looking at right now!!
San Diego Real Estate Specialist
Residential Sales and Appraisal
Rene M. Suarez
If you are pre-approval for your loan and there are no skeletons in the closet, then closing by Feb 23 should be effortless. The things that slow down escrows:
1.a. Lenders appraisal - make sure that your lender gets the appraisal out immediately and expedites the report. You should be able to get the appraisal done and submitted to the lender in 72 hours.
1.b. Lenders documents and processing - tell your lender your timetable and get a commitment that they can actually get your loan done in the time allowed. If they hesitate, even a little, then double app your loan. In other words have an ace in the hole, a second lender, who can slip in behind your current lender if things don't get done. Remember, since you pay for the appraisal, it belongs to you, so if you need to use the second lender you can have the appraisal transferred to them (sometimes there is a minor charge for this, but it sure beats having to pay for two appraisals and/or losing the home).
2. Skeletons in the closet - Make sure that everything you told your lender to get your pre-approval was correct. If there are discrepancies between what you told them and what your employer reports, this will slow down the process.
3. Inspections - call you inspector immediately, schedule the inspection, and make sure they will provide a maximum 24 hours turnaround on the report. Make sure you are there at the inspection, that way you will know everything that will be in the report before it is issued. If additional inspections are suggested, call out those inspectors the same afternoon and schedule them out in the next 24-48 hours.
4. Verifications (of employment, deposit, etc) - Find out which verifications are being sent out by the lender (some just use pay stubs and bank statements, others send out actual verifications to your employer, bank, etc.) then take the initiative to follow up with your HR department and bank officer to insure they are being completed and returned immediately.
5. You - make sure you review what needs to be reviewed on the day received and ask your questions immediately. Make sure you fill out and sign what needs to be filled out and signed on the day requested and return via fax and then snail mail (if you cannot hand deliver).
6. Your agent - make sure they are committed to being there for you to answer questions, recommend inspectors, meet appraisers, etc. They are a very important part of your team.
I have closed escrows in 7 working days (not including weekends and holidays) without a hitch. All it takes is a great team of professionals and communication. You have 4 times that amount of time, so, stay alert about what needs to happen, enjoy the process, and enjoy your new home. Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty