Home Buying in San Diego>Question Details

Sj, Home Buyer in San Diego, CA

Is it typical for REO banks to not respond?

Asked by Sj, San Diego, CA Tue Nov 11, 2008

Is it typical for REO banks to not respond to an extension for escrow till after the escrow deadline has passed? Escrow was to be closed on the 10th of Nov and the file for extension was sent on the 4th of Nov due to the expectation that our lender delayed in delivering the loan docs to escrow. The loan docs were expected to be delivered on the 3rd, but were not actually delivered till the 7th due to a delay from the lender. We asked for an extension plus per diems to be waived since the delay was not caused by us but the lender. We have not heard back from the REO and are wondering 2 things. Are they planning to back out? And will they approve the waiver as we gave notice early of the problems with our lender delay (missing appraisal signatures, etc.). My husband is starting to get cold feet due to the number of delays/obstacles it has taken to close this deal and thinks it is a sign. Anything to ease his fears is welcomed!

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Sj -

Based on my experience, I would move forward with closing asap. The sooner the better to avoid per diems. What ever per diems are charged, if the lender was truly the reason for the delay, have the lender pay the per diems.

If the lender was the REO choice, tough call but I would try to get it closed and avoid any more delays/costs.
Find out who the contacts are and start making the phone ring. Make sure you agent is all over it.

Good luck!
CJ
Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Tue Nov 11, 2008
When you are proceeding with purchasing a third party property delays, miscommunication, and speed bumps are all a part of the process, especially in this market. Be sure to have good legal representation, and be patient, you have come this far, I would hang in there.
0 votes Thank Flag Link Tue Nov 11, 2008
Sj,

Welcome to the CRAZY world of 2008 REO transactions.

Since they have a buyer, it's doubtful they will be backing out unless there has been significant activity on the home or possibly have another buyer willing to pay more. This is a case of only the bank knowing what they will be doing.....there seems to be little or no accountability with banks making up things as they go along.....

Do you have a bank contact person that will is assigned to your case and will be expaditing your deal? Be in touch with this person daily until you have the information you need.

The "cold feet" can be warmed if this is the right home, in the perfect location, being offered at a real savings. The "sign" will be when they tell you your application was rejected. What is happening is normal for these transactions and always leave people wondering if this is the right move.

Truat that you did the right thing from the beginning and that the bank will eventually get its act together. Make them say NO to you.......

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Tue Nov 11, 2008
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