How long to take a bank owned property to close.?

Asked by Ashely, Seattle, WA Fri Apr 16, 2010

The status of the house is pending. Generally, how long to take a bank owned house to close.And what are the steps to close a house after pending? What do I have to prepare? When can I get the key? Thanks

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11
Deborah Burns, Agent, Bellevue, WA
Fri Apr 16, 2010
Hi Ashley,

Bank owned homes are usually pretty standard for length of closing, approximately 30-40 days. The banks want them to sell as soon as possible to get them off their books.

The closing date (which is negotiable) is the amount of days a buyer needs to perform their side of the transaction. That would be for the inspection (plus whatever time is negotiated to resolve any issues), buyers' lender loan processing time (your lender will have given you an idea of the number of days they need to process your loan) title and escrow time.

Your agent will be helping you with keeping track of what needs to be done, and communicating with all parties involved. You will get the key once escrow is completed and your agent will coordinate that.

Best wishes on your home purchase!

~Deborah
1 vote
Marcelina Mc…, Agent, Duvall, WA
Wed May 5, 2010
Hi Ashely,

I agree with most below. All your questions should have been specified in your offer, which was either accepted as is or with changes.

I have recently closed four bank owned homes for my buyers; usually the buyer's bank (the one you are getting a loan from) takes longer to fulfill your loan, than the bank (seller) that currently owns the property to approve the sale.

Good luck and Congratulations!
0 votes
Dianne Hicks, Agent, Rancho Bernardo, CA
Wed Apr 21, 2010
These are questions you should ask your lender and your Realtor. It depends on how long you lender needs to fund and what are the conditions of the funding. It has to be appraised and you need to do your home inspection. On average here, it is about 30 days but it really depends on your lender.
0 votes
Brenda Bryni…, , 98116
Wed Apr 21, 2010
That's not a black and white question. It depends on the bank, the terms of the purchase and sale, the funds to close, etc. An all cash buyer may close in two weeks! After pending, the escrow is set up, and the escrow officer orders payoffs for utilities, taxes, orders documents, prepares the closing statement (HUD) and faciltates the closing. As the buyer you will be gathering all the necessary documents for your lender, if you are financing the purchase with a mortgage- your mortgage officer will instruct you thru that process. You get the keys after the closing, which in WA means when the county has recorded the deed and deed of trust.
Good luck.
Brenda
0 votes
Ardell Della…, Agent, Kirkland, WA
Sun Apr 18, 2010
P.S. to mine below...also...you need to get insurance on the home, but if you call your lender and escrow closing agent as I noted below, they will help you with that. They will also give you wire instructions for your monies or tell you how to get a cashier's check for closing. If your money is by check vs. wire you may have to get that to closing a little earlier. So ask for written instructions.

After it closes, I would appreciate your coming back and letting us know which house you bought and how it went, if you can find the time.

Thanks!
0 votes
Ardell Della…, Agent, Kirkland, WA
Sun Apr 18, 2010
Assuming you don't have an agent (or you wouldn't be asking us), contact your escrow closing agent and your lender to make sure there is nothing they need from you. If you are past inspection (you should do an inspection before closing whether your contract is contingent on an inspection or not) these are the next steps:

1) Your loan documents get to escrow.

2) Escrow calls you for a signing appointment after loan documents arrive at escrow.

3) You go to escrow with your money and your driver's license to sign your closing documents, usually no later than the day before closing.

4) Keys are to get to you by 9 p.m. the day the property records at the County (closing). That may or may not be the closing date in your contract, but is not usually later. The seller's agent usually gives those keys to the buyer's agent who gives them to you.

Since you are pending, you have a close date in your contract on page 1 of Form 21 (if it is a house vs a condo). It may say "on or before" that date, in which case you can close earlier if the bank is ready early too. Most bank-owned sales have a $$$ per diem if you pass that closing date, or they may keep your Earnest Money. So look at the close date in your contract and make sure everything is done within 3 business days of that date or so to protect your Earnest Money.

Let us now if you have any other questions...and good luck!
0 votes
Rob Graham, Agent, Seattle, WA
Sat Apr 17, 2010
Your agent should have answers to all of these quesitons for you. The truth is that nol two transactions are alike. It depends on a miriad of factors that without knowing your situation are impossible to answer.

Good luck.
0 votes
Jirius Isaac, Agent, Kenmore, WA
Fri Apr 16, 2010
Bank owned houses close just like normal houses close, according to your contract. Where is your agent in all this. If you bought without out, you better get some help quickly. If you do not have an agent, you can hire me on a fee for services basis and I can help you with whatever you need. Just give me a call.
0 votes
Tonya Brobeck, , Everett, WA
Fri Apr 16, 2010
What's the closing date on your contract? Your agent can direct you much better then any of us, as we are unfamiliar with your transaction. Your agent also usually gets the keys for you too after closing and recording.
0 votes
Dan Tabit, Agent, Issaquah, WA
Fri Apr 16, 2010
Ashely,
This is a good question for your agent. Some of the issues to be addressed are; opening escrow, finalizing financing, conducting your inspection, reviewing title. Once you are pending it can be busy. As far as how long does it take, what does your contract say about closing? If you are truly pending the bank has accepted your offer and there should be a closing date in sight. It could be as little as 2 weeks or as long as 2-3 months. Most sales close in 30 -45 days. Keys arrive on closing, unless other arrangements have been made within your contract.
I hope this was helpful.
0 votes
Ray Akers, Agent, Seattle, WA
Fri Apr 16, 2010
There is no good answer to this question. I am aware of a condominium that has been in 'pending' status since April 2009, 12 months and counting. Jumbo mortages can take as long as five months to close. In my 24 years in the real estate industry I've never known a worse lending climate.

The question is, what does 'pending' mean to you and what does 'pending' mean to the bank? Has the appraisal been completed? Do you have credit approval from underwriting? Has the bank committed to your offer, or, are they still soliciting for back-up offers? Pending does not always mean pending these days.
0 votes
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