What options do I have when buying a foreclosure with a deed not being recording and now the bank continually delays.?

Asked by Michael Dery, Bedford, NH Tue Dec 18, 2012

I am trying to buy a foreclosure in New Hampshire. We submitted an Offer and it was accepted on Oct 24. We proceeded with the normal home inspection, appraisal. Got financing to originally close on Dec 4. The deed was not recorded in the selling banks name and still is not. We are facing yet another extension because of this. Does anyone know if I have any case here or what the next steps would be?

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Gsally08, Renter, Hinesville, GA
Thu May 1, 2014
We are going through the same situation. Did you eventually close on the house? If so how much longer did you wait?
0 votes
BJ Carbee, Agent, Peterborough, NH
Mon Apr 8, 2013
Sorry about the delays, Michael. Unfortunately this happens all to often. Recently this occurred with a Sharon foreclosure. The listing agent could not get the action we needed, nor could I, the Buyer Agent. Finally, the Buyer Client did contact the office of Senator Kelly Ayotte and explained what was happening, or not... Ayotte's office not only supplied the Buyer with bank contact information, they followed up and we did successfully close within a few weeks of contact. If this ever happens to one of my Buyers, I will advise them to contact Ayotte's office ASAP!
0 votes
Jamin M Jones, , Gloucester, MA
Wed Dec 19, 2012
I am truly not sure on that one. If you need a Realtor, I have many great agents in the area and I'll be glad to recommend some to you if you like.

Just let me know - be happy to help !!

Jamin M Jones
Home Inspector NH Lic#280

Mobile: 978-675-7597
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Dec 19, 2012
Unfortanately with some banks this is common. The key is for the buyers title company doing teh search early in your buying process, finding this and requesting the deed a good 3 weeks before closing. As your sale as gone beyond the closing date, at this time the 2 things you should do is have your closing company check with them daily but have the listing agent use their contacts to get the foreclosure deed to who needs to sign it, have it signed and sent to the closing company for recording and then you can close. If everyone waits for them to do it withiout being encouraged to hurry, you can wait a long time. With their purchase agreement and addendums most likely you waived your rights for recourse.
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Jason Duval, Agent, Nashua, NH
Tue Dec 18, 2012
As far as legal challenges, there is little you can do to force the bank to do anything. These are massive companies with too many moving parts to track most of the time and ultimately many files end up neglected somewhere. It is important that your agent keep the pressure on the bank closing company for constant updates. In most bank addendums (the Addendum A) there is a provision that would allow you to back out of the contract if the bank can not rectify the situation within 30 days of discovering the title issue. If that is the case here, you can get out, though I would not advise that. As an REO agent, I have run up against this quite a few times. It really comes down to your ability to wait it out or not. The rewards typically out weigh the risks in that you know the bank will square the issue eventually and you will get the home, which I am sure you have already invested time and money in due to inspections, appraisal etc. Word of caution, if your bank has a per-diem assigned to the property for failure to close, make sure any subsequent extension states that you are not to be charged this per-diem. Good Luck.
0 votes
Moe Archamba…, Agent, Bedford, NH
Tue Dec 18, 2012
I just went through the same situation on another bank foreclosed property that was scheduled to close on September 1st. We finally closed on December 7th. I recommend that your title company keep the pressure on the seller's attorney. Not a whole lot you can do other than sit and wait while the title company keep pressure on the seller's attorney. Keep an eye on your financing rate lock date and commitment expiration date. You may need to extend if the expiration date is coming up. Also make sure you keep up with updating the extension date for the proposed closing date on the purchase & sales agreement too.
0 votes
Did you find anyway to speed up the process? We're looking at 2 months almost with my current situation.
Flag Tue Dec 18, 2012
Ron Thomas, Agent, Fresno, CA
Tue Dec 18, 2012
When you say that the Offer was "accepted"; by whom?
If it was accepted by the Homeowner/Seller, then you have nothing; the homeowner is really just a "rubber stamp".
The real acceptance comes from the BANK.
Without a real acceptance, you may have wated the money for an Inspection.
The DEED will not be recorded until the Escrow closes.

Don't you have a Realtor advising you?
0 votes
Yes I do, and shes doing a great job we just can't get any info from the foreclosure attornies about this and didn't know if anyone had prior experience with something like this. The offer was accepted by bank.
Flag Tue Dec 18, 2012
Ursula House…, Agent, Navarre, FL
Tue Dec 18, 2012
If it is a good deal than patience is your best partner! As far as the deed goes, make sure you have good title insurance! Do not proceed if you can't buy it! If you are financing the purchase the lender will make sure there is not title issue or they will not finance the sale, if you pay cash, you might want to hire a Real Estate attorney!
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