Last month I posted the first set of REO tips being presented by Ticor Title. Though these weekly tips are directed to real estate agents I think consumers will also find them helpful in providing a better understanding of the process surrounding purchasing an REO property.
Here are the latest tips from our friends at Ticor:
Escrow Tips For A Successful REO Closing
♦ Remember that the Final HUD must be approved by the bank after all buyer documents are signed. Allow a minimum of 3-5 days.
♦ Review the counter offer/addendum checking for new terms and closing date.
♦ Make sure lender is aware of bank’s new close of escrow date.
♦ Counsel your client and explain to them that this is not like a regular resale transaction.
♦ Don’t assume that because your buyer is paying cash that the transaction can close a month before or earlier than the counter offer date.
♦ HOA demands must be ordered as soon as possible.
♦ Read the Counter in connection with Home Warranty Plans. The bank may be willing to pay, but only if it is with a specific company.
The most common things that could delay closing on an REO transaction that we’ve experienced so far are:
♦ Trustee’s Deed not yet recorded.
♦ Legal Descriptions recorded incorrectly before or during foreclosure process.
♦ Authorized Power of Attorney signed by asset manager not yet in possession of title department.
♦ Deed not yet signed by asset manager and/or bank.
♦ Liens and encumbrances not yet removed by foreclosure.
If you need more information on these tips, please feel free to contact Erin Schiller or Jenna Riley at (775) 324-7400. Tell them you saw their tips on the Reno Realty Blog. If you have a question you would like answered that is title & escrow related, email renosales@ticortitle.com . They may make it it a "Ticor Tip of the Week".
