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Delayed Closing Date

Hello,

We put in a all cash offer for an REO/Bank owned foreclosure and the offer was accepted. The home needs some work, specifically a roofing repair so we requested an expedited close date if possible (three weeks ago). Now then not only was the title company not able to expedite the close, the original close date has come and gone due to the "Seller" waiting on a copy of the recorded deed. In the meantime we've been experiencing torrential rain showers and I need to get the roof repaired so we e-mailed the title company yet another request to give us an estimate of the close date and/or state the specific nature of the delay. What did we get back? An e-mail granting us access to fix the roof at our own risk but still no closing date estimate as well as a snotty note telling us they could cancel the contract and deal with a less demanding buyer down the road if they so desired. What? Does buying an "AS IS" Reo mean we have no right whatsoever to try and protect our future investment? And, why do you think they gave us "permission" to fix the roof but still won't/can't tell us how far we are away from a closing date?

Any rational input would be appreciated!

Debra M
  • June 23 2010 - Orlando
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Answers (5)

Hi Debra,

Right now the banks (especially the big ones) are completely overwhelmed with REOs and do not have the resources to close on these quickly or much less provide any kind of customer service.  The email back from the title company is most likely just a sign of their frustration.

As far as why they would allow you to fix the roof without a closing it is because the bank has nothing to lose.  If you close then it is a win/win. If you don't close then the bank wins.

Good luck to you!
  • June 23 2010
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you also can cancel the purchase, generally speaking, when the seller doesn't make the closing date.

You are in Orlando, which is in a world of hurt; There is actually no end in sight to foreclosures and better deals, given the state of the Orlando real estate market, so unless this thing is a super special deal, re evaluate your options.
  • June 23 2010
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Unfortunately, you're at their mercy especially if you didn't include a failure to perform clause similar to the bank's; i.e. charging a per diem if they fail to close when they're supposed to close.
At this juncture, and without actually looking at the contract, there's nothing you can really do other than walk away from the deal.
Best of luck,
Rachel
  • June 23 2010
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Sadly, Banks hold the cards where REOs and Short Sales are concerned. Many times they make foolish decisions and let a good buyer walk just to later sell the same house at a lower price. Not to mention what it already costs them to keep the house around longer. They really don't care and I think the fact that they are overwhelmed would make them want to get rid of a property that much faster so they have one less on their books but logic eludes them.

Your options are either to hang in there or walk away. I would certainly NOT repair anything on a property I do not own b/c if you don't close, there will be no reimbursement for those repairs and you will lose out on that money.  If you are concerned about leakage. Your best bet is to just place a tarp or tarps on the roof until closing. Atleast those are inexpensive and recoverable should the deal fall through.
  • June 23 2010
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What would I do?  I would go in with blue plastic tarps and protect my potential investment without being out the cost of a proper roof repair.   Or, I'd withdraw my offer.
  • June 23 2010
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