Profile picture for gbobay

How long will it take to close on a Foreclosure?

I'm in contract and had a closing date set for May 20th. In addition, the bank added a "Time of Essence closing date" with penalties if I missed this date.
Well, I was ready to close, and as of today(June 6) am still waiting for the signed deed from the bank. Almost 3 weeks later.

This has put me in a tough position, as I have already given notice to my landlord that I'm leaving.

What can I do to make sure I get the deed signed and close on this property?

I've already sent out a letter trying to enforce the "Time of Essence" clause that the bank put in, and was advised any legal action such as specific performance would be costly and time consuming. I also know I can cancel the contract since they are in breach, but again, then I have to go to court to recoup my costs.

What is the point of a contract if I don't even feel I'm protected?

Any advise would be appreciated.

Thanks!
  • June 06 2014 - Guttenberg
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Answers (2)

Profile picture for gbobay
Thank you Robert.

Yes, I have an attorney that advised of the time and cost to pursue legal action. Additionally, I don't want to cancel the contract, although I did threaten to to try to get some action, but it's a bank. They just don't seem to care!

I also have been bugging the listing agent, my mortgage company, as well as my attorney to makes calls and keep on top of the bank and their attorney. Not sure what else I can do, but I agree, and think someone dropped the ball somewhere.

The banks attorney did respond to my attorney about the delay and she just said that in today's climate, corporations, especially lenders are very particular about document execution and it's not unusual for delays to occur because of this.

That may be true to a certain degree, but I'm just not buying it!
  • June 06 2014
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Profile picture for robertncook
You've definitely done your homework.
 
I have worked with REO properties for several years, and can say with some certainty that if the property did not close within a week or two of the initial date, and it's not something you did, someone very seriously dropped the ball somewhere. This does happen, and I can give my share of stories that range from the title clerk who didn't know that the seller was an institution, to the property file that magically disappeared from company servers and made everything start from scratch. Which is kinda sad, because I've also been involved in REO transactions that ran less than a week from contract to closing. 

The "Time of Essence" clause, as long as it was written properly, provides reciprocal protection for the buyer: The State of NJ was very careful when writing up its real estate laws to create a lot of protection for the buyer. If it wasn't your own lawyer who told you that "legal action such as specific performance would be costly and time consuming", then you definitely need to get your own lawyer, as someone on the other side is trying to scare you into submission. Most banks (there are a few exceptions that I no longer work with) are very reasonable. 
Otherwise, you (your agent, if you have one) need to stay on top of the listing agent, to make sure that they stay on top of the property's asset manager, who is the driving force on the bank's end. Ask for full disclosure. You deserve nothing less. 
  • June 06 2014
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