When buying a REO home, whats the longest they'll allow you to push the closing date? 30 days? 45? More?

Asked by Jen, Dallas, TX Tue Mar 10, 2009

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Keith Manson-…, , Milwaukee, WI
Tue Mar 10, 2009
You have received all good answers. The thing you have to think about is that you are competing with other buyers for foreclose properties. The banks will want the best buyer, at the highest price and the deal that is most likely to close. The longer it takes to close the more it costs the bank. The bank may charge a per day charge, but typically that charge is higher than it would cost you if you closed.

The question is; how would you guaranty the bank you will close and are you willing to pay more than it would cost you daily if you closed. This all depends on the demand for the REO you are going after. If there is a high demand for the house your going after you need to just do the deal and close. Don't try to play games, the bank will make it difficult enough and you do not want to over complicate the deal. The more complicated the deal is the more likely it will not close as a REO.
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Bruce Lynn, Agent, Coppell, TX
Tue Mar 10, 2009
Jen,

If you are talking contract to close 45 days is probably ok. Try what you need and see what they say. Typically what we see is the longer the buyer wants, the more risky it is for the seller. So often they don't want to wait forever for you to close. They then get real cranky when you don't close on time. If they think it is going to happen they can wait a day or two and I've seen them waive the per diems if you push, but do your best not to miss your closing date. Many of the contracts are now written so that if you miss your closing date, they can cancel the contract and the only damages you can receive is your earnest money back. You'll be out appraisal, inspection, etc
Web Reference:  http://www.TexasDistress.com
0 votes
Andrea Brooks, Agent, Plano, TX
Tue Mar 10, 2009
Hi Jen,

The other agents that have responded are correct - you need to have your loan approval in place and your closing date nailed down when you're making your offer. I've had a few contracts go beyond the closing date because the lenders didn't have everything together on time, paperwork backlogs, and/or there were title issues. These types of deals can drag way out, so you have to be prepared for that scenario too. If you are in a lease it's worth paying an extra month's rent rather than finding yourself without a place to live! If you need an agent, please give me a call. I'd be happy to assist you. You can also visit my website to search MLS without registration - it's a great way to preview property.

Best regards,

Andrea Brooks
The Brooks Team, Keller Williams
469-450-1326
Web Reference:  http://brooksteam.com
0 votes
Margaret T.…, Agent, Conroe, TX
Tue Mar 10, 2009
Jen,
If it is going to take you a while to close make sure it is clear in the offer, just as stated below most will charge per diem for going past the closing date, and it is not cheap. A lot of them charge $100. a day.
So make sure you have all your ducks in a roll before makeing that offer.
Margaret
0 votes
The Laughlin…, , Dallas, TX
Tue Mar 10, 2009
It depends on the lender; most will charge a per diem for pushing the closing date after you've agreed upon a closing date and the contract has been executed. I can tell you from past experience, they like to dictate the closing date, and they want to close as soon as possible. Check with your realtor on how to proceed.
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