What is the expected closing time regarding forclosures?

Asked by Margie Kandefer, Ellicottville, NY Sat May 5, 2012

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Christine Gr…, Agent, Williamsville, NY
Sat May 5, 2012
If you are looking to purchase a forclosure, it shouldn't take much longer than a typical closing in Western New York. That is, If the house is truly in forclosure. If the house is in "short sale", it could take as little as 60 days, or depending on the bank, it could take several months.
But, if your home is going into forclosure, it varies greatly by the lender. I would be happy to discuss with you to help you to understand the process.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sat May 5, 2012
Is the property a short sale, or bank owned...there are many factors that will determine closing time, as each property is unique; therefore your agent and or attorney can provide better answers, consider a consultation...
1 vote
Gary Geer, Agent, Antioch, IL
Tue Jun 25, 2013
If you have executed all the conditons of the contract including any lender required addendum, and your loan has been approved you can usually expect to close sooner than most other sales. What date does your contract show for a closing deadline? You can usually close sooner if all parties are prepared to close. Talk to your attorney and agent.
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Irina Karan, Agent, Aventura, FL
Tue May 8, 2012
Hello Margie,

Right now, there are 3 types of transactions (normal, short sale and foreclosure).

It's good that you asked about this, because now you'll know which kind to go through...

Short sales - when your contract with the seller is subject to the short sales bank approval (and seller having a true hardship). These could last from a few weeks to 3 years...because some banks and their underlying investors are just terrible/could care less about homeowners/buyers.
While you are waiting, other good deals could come by - but you'll be in contract already...
You got to really love your short sale house to stick around for however long it takes.
If you loose patience, after the agreed upon "approval" time - like 90 -120 days (or more), you can exit the transaction (this has to be done right to protect your easy exit).

Foreclosures - bank owned sales - your agent will need to make sure to have a good attorney/title company check on liens and title issues that foreclosures often come with. These types of transactions take from 3 weeks (if cash) to 45-60 days (if financing). Sometimes, foreclosures offer teaser pricing - and end up sold above the market value, due to bidding wars. Multiple offers are pretty common on these...

Normal sales - some homeowners are very motivated and might sell at prices lower than short sales or foreclosures. Not to be overlooked!

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
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Martina Ryan, Agent, Bayside, NY
Sun May 6, 2012
It could take up to 2 year & sometimes longer depending on the person holding the mortgage.
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Ian A. Wolf, Agent, Morristown, NJ
Sat May 5, 2012
If you are referring to the time frame to purchase a bankowned or REO property, it is completely dependent on who is administering the sale. Typically banks do not handle their own properties, it is outsourced to a servicer. So, there is a lot of back and forth between the parties involved and that can lengthen the time as well as cause frequent issues with communication. All in all, I would expect a bank owned property to take a little longer than you think it will, however, be prepared to close within the time frame specified. If you don't, you may be penalized. It may seem unfair, but the banks make the rules.

hope that helps.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Sat May 5, 2012
Foreclosed homes don't close in the typical way. Since they are being foreclosed they are auctioned and the buyer pays cash then or in some prescribed period after the auction is over. There are no loans which is what a closing is for, the loan documents are all signed and money transfered. I assume you are not talking about a bank owned home sale, that many was foreclosed in the past at some time, those can close like a regular sale since that is what they are.
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