Zach, Home Buyer in Worcester, MA

my wife and i are purchasing a home that is bank owned.

Asked by Zach, Worcester, MA Tue Apr 7, 2009

it is a foreclosure property that has been on themarket since last march. we have done everything necessary to close but the date has been continually extended for the past month and a half!!!!!! what is someone not doing?

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to update. we do have a buyers agent and an attorney. a communication clause would've been a good idea though
0 votes Thank Flag Link Tue Apr 7, 2009
Zach, aside from the great advice to work with an attorney and a buyer's agent, there is no guarantee that would make much difference, time wise. The process banks and asset management companies go through with foreclosed homes is imperfect at best, and often drags on even when the buyer has done everything correctly. It is often related to internal paperwork problems or legal issues that you, your agent or your attorney have no control over.
Patience and best of luck!
0 votes Thank Flag Link Tue Apr 7, 2009
Hello Zach-

It's late for you, but for others reading this post, if you're going to purchase a foreclosure, a buyer's agent is a good way to go. If you haven't purchased a foreclosure before, or a short-sale, or for that matter, just a traditional sale, there's a lot of things that you don't have experience with - and that inexperience can lead to a lot of needless anxiety. I inform my buyers about bank involved properties that they are HORRIBLY slow, and we do what we can to enforce open communication with the bank (Generally I put communication clauses in the offer to purchase). It's hard to know if your experience is typical or atypical if you don't have any benchmark to compare it to, or previous experience to fall back on. As others have mentioned, your experience is normal, at least to this point, and the extra time you are spending waiting around is part of the reason why not everyone buys foreclosure properties, and one of the reasons they sell below market.

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0 votes Thank Flag Link Tue Apr 7, 2009
I can not stress enough how important it is to use a real estate attorney when it come to purchasing real estate, especially when it involves foreclosures and short sales. Foreclosures need special attention when it comes to the title work to make sure the foreclosure was done properly.

With that said, the bank accepts your offer than tells you you have to close in 3 weeks. Many times the bank is not ready and delays the closing. A month delay is not unusual but several months would be. Ask your agent or attorney what is causing the delay. Most likely the bank is flooded with foreclosures and they are just trying to get through their mess.
0 votes Thank Flag Link Tue Apr 7, 2009
Are you working with a good real estate attorney? He/She would be in the best position to answer this question.

Most banks are not local and are swamped with these foreclosure cases. Questions that come to mind are, were all the foreclosure papers filed? Was the title clean? Is this a condo? Are there back taxes? There are a number of issues that the bank may need to settle and the more there is, the more the delay because banks aren't known to act fast unless they have local representation.

You shouldn't be in the dark about the process, your attorney and/or your agent (or perhaps the listing agent and bank's attorney) should be able to provide you with information regarding the delay. As long as the delay is on the banks' side ... you aren't getting penalized ... you just have to be patient.
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0 votes Thank Flag Link Tue Apr 7, 2009
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