Home Buying in Santa Ana>Question Details

Martin, Home Buyer in Santa Ana, CA

I ENTERED ESCROW ON AN REO IN FEB. WE HAD A CLOSEING DATE ON 02/24, THEN EXTENDED TO 03/09 AND THEN EXTENDED

Asked by Martin, Santa Ana, CA Wed Mar 25, 2009

TO 03/27. WAS PREAPPROVED, AND UNDERWRITER WANTS THE SAME INFO I HAVE ALREADY PROVIDED. OFF THE SUBJECT HOW MUCH ARE 4 BEDROOM HOMES GOING FOR THAT IS GOOD CONDITION IN SANTA ANA CA. ??? I THINK THIS IS WHAT KEEPS ME HANGING IN THERE.

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Martin, since you've been asking questions for a while, and "in escrow" also for a while, are you sure this was not a short sale, instead of an already foreclosed house? Most REO transactions are geared to close escrow in anywhere from 5 to 30 days - it is unusual for them to drag an escrow out, when the buyer is preapproved.

On a short sale, however, most agents don't have their clients even open an escrow before they have the lenders involved approvals. It sounds to me, like the agents may still be negotiating for that actual approval. Also, in a short sale, there is a possibility that other buyers can overbid earlier ones, and the lender actually jumps to a higher bidding buyer.

Hopefully this isn't the case, but it does sound a bit suspicious. Do you have your own agent, or are you dealing with the listing agent of the property.

Here's a thought, go onto my free MLS search website, linked below. You can not only search for other houses, as you've asked about, but you should be able to check the status of the house you're in escrow on. If it says that it is still available, "A" status, you're probably in a short sale.

Good luck in finding the right answers.
0 votes Thank Flag Link Wed Mar 25, 2009
Well Martin, I feel your pain on being dragged along a REO closing. I have a client right now in Tampa, FL who is going through the same thing. She was under contract in early Feb and was supposed to close by end of February. Then got bumped to March 8, then March 23, Then now April 8th.
The underwriter with your bank is looking out for your best interest and theirs. And since the extension keeps going on, she needs to make sure nothing in your life has changed, like job, new debt, credit etc. With REO's banks need to satisfy all previous leins on the home like water, sewer, trash, electric, contractor work, taxes, permits, everything. Sometimes there are circumstances where there is difficulty with those leins getting amounts due or insurance claims in process. Your title company would be handling all of that and negotiating with the bank to get them paid at closing.
If you are in a need to move in by a certain date, have your agent draft a early occupancy agreement. This shows the bank you are still interested in buying the property but the delays in closing aren't feesible for your current living situation, like your rent is up within 2 weeks and you already told your landlord. If anything, ask your agent to pry information out of the title company of why there are so many delays and have them be your advocate on getting this closed in a timely manner.
0 votes Thank Flag Link Wed Mar 25, 2009
Martin - that's a pretty general question. If you are working with a real estate agent on the purchase, we suggest you contact your agent for assistance in this matter. If you are not working with an agent on your purchase, please let us know.
0 votes Thank Flag Link Wed Mar 25, 2009
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