Home Buying in Orange>Question Details

Sam, Home Buyer in Orange County, CA

What if the bank that owns the foreclosed home I want to buy, goes bankrupt before I close?

Asked by Sam, Orange County, CA Tue Sep 16, 2008

I'm in escrow on a house that was foreclosed on and now is owned by Washington Mutual. I'm hearing a lot about Washington Mutual filing for bankruptcy in the next few days. Does this mean I won't be able to close? Will their assets (i.e. the house I want) be locked? If anyone knows about this, please help. Thanks.

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Answers

3
Hi Sam,
I am assuming you are not obtaining the loan with Washington Mutual, but that they are the owners of the property you are interested in. If the bank taht holds the property failed, you would still be in escrow but it would take a lot of time and patience on your part to see it close. Asset managers have so much property on their desks that they are trying to sell off, and if someone else took over the particular property you were working on, it could definitely cause a delay in processing and closing on time. Best Wishes, there are great deals out there, but patience is the key!
1 vote Thank Flag Link Wed Sep 17, 2008
Gabriel,

Did you know the questions you have been answering this morning are VERY old. This one is more than 2 years old as is the only other answer !

Best,

Thom Colby
0 votes Thank Flag Link Thu Sep 22, 2011
Unfortunately it is a bloody mess. Sorry to hear how your purchase turned into a nightmare.
My wife is an asset manager and as Ellen mentioned her work is endless. We just ned to put an end to this mess and believe me it is not impossible as it sounds. It does require leadership . There are solutions but not implemented.
0 votes Thank Flag Link Thu Sep 22, 2011
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