my daughter is buying a foreclosed property and she just told me that she did not take possession at the closing? Is this normal? They said she

Asked by Judith Michael Soth, Dexter, MI Thu Jun 3, 2010

should have the keys by the latest after the weekend. I'm concerned, it was a cash deal - no loans involved.

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Patti Namey, Agent, Jacksonville, FL
Thu Jun 3, 2010
BEST ANSWER
I had a similar experience with customers who purchased a foreclosure. My customers signed everything at closing on a Friday but did not receive the keys until Monday. I was a little more comfortable with the procedure as the title company was also included under the Watson umbrella of services.
Web Reference:  http://www.pattinamey.com
0 votes
Robin Ricker, Agent, Titusville, FL
Thu Jun 3, 2010
As long as the reason given for this is that the lender is waiting for the buyers funds to clear, it is normal. If another explaination was given, I would tend to question it.
Robin Ricker
Century 21 Flag
1 vote
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Sun Jun 17, 2012
It was called a Dry Closing.

Reason? Dodd/Frank Act

Happens a lot due to the Obama massive over regulations (i.e. Dodd / Frank Act) which has made closing loans like trying to herd cats, while the government throws fire crackers at them the entire way!

All should be fine and the loan will likely fund when the wire hits on Monday or Tues.

Steve McRory
Pro Option Mortgage/ Florida
steve@pro-option.com
http://WWW.PRO-OPTION.COM
Ph: 888 662 4404
0 votes
Frank & Shar…, Agent, Fleming Island, FL
Sat Jun 12, 2010
Judith, I just closed a cash foreclosure today and they will get the keys Monday. Banks definitely play by their own rules. The bank had the wire prior to signing the papers, and they sent me the the paperwork to have the buyers sign and fax back. That's it! They don't even want the original papers. Congratulations to your daughter!

Frank & Sharon Alters, CDPE, e-PRO, GRI
Watson Realty
904-673-2308
sharon@teamalters.com
Web Reference:  http://teamalters.com
0 votes
Matt Carroll, Agent, Neptune Beach, FL
Fri Jun 4, 2010
Judith,
Yes this does happen sometimes with the bank owned properties. I wouldn't call it "normal", but the banks like to play by their own rules.

Best of luck to your daughter in her new home.

Matt
0 votes
Christian Wi…, Other Pro, Jacksonville, FL
Thu Jun 3, 2010
Funny, just went through that situation exactly in the same area. Supposedly they are waiting for the money to arrive in their account. Kind of strange for a bank isnt it, considering when you write a check the money is gone within 1 day. Wish you would have said something earlier as I could have told you what to do but I will just tell you that I took possession immediately. The 1st one I bought in this downturn a couple of years ago taught me how to not let the banks push you around because they will try. The other thing is getting a copy of the excecuted deed at closing, very important for a cash deal. Title insurance does not go into effect until that deed is recorded and I waited a few months a couple of years ago. Mostly because no one said anything. They get your money and now you cannot even get the house immediately afterward and then you have to wait to actually get clear title. One good slip up and you are out the money and the house. They dont trust you but you have to trust them completely. I know they duck and run and hide when they see me coming because I refuse to do business like that.

Anyway, I'm sure she will be fine but she needs to stay on them to get the keys and the deed as she will not be whole until then. Was kind of nerve wracking for me as I know too much about what goes on and yes you have to be more careful in a cash deal!.
0 votes
Judith Micha…, , Dexter, MI
Thu Jun 3, 2010
I can't believe how quickly I got answers. Thanks so much, I feel much better. I think the reason given was waiting for funds to clear, which I couldn't understand because it was a cash purchase and the funds were wired that morning. But it was held at a title company and I'm just going to have faith. Thanks again!
0 votes
Kmbrennan, , Florida
Thu Jun 3, 2010
Judith,
Was this done by a mail away closing. I.e - was the property, title company, and selling bank located out of town and the closing executed by a local coutesy closer- not at the title company?
If so, the closing docs and the check may need to be mailed away , verified, and the keys mailed back. This would be a scenario where a delay in getting the keys would be reasonable and expected.
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Thu Jun 3, 2010
Yes, it's normal. They will wait until the funds are clear.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Jun 3, 2010
Without knowing why she wasn't given possession, not an easy question to answer--are the sellers still occupying the house, etc.
0 votes
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