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How to Get a REO Property Closed Quick

A couple foreclosure tips

flickr photo by stilleben2000

Let’s face it the foreclosure market is going to be with us for awhile. If you have never bought a foreclosure before – there are some steps to be aware of.

It’s no surprise that lenders are overwhelmed with properties, heck, I know some lenders are buying portfolio packages from other lenders to make money.

These are a couple things we’ve come across.  For example, when a property goes into foreclosures liens are to be paid, including property taxes.

What we have found in this portfolio buying from one lender to another is that property taxes are not paid till a contract is executed. This can delay the closing. Have a title search done as soon as know you want to buy a foreclosure.  A listing agent should have done this but it’s not always the case.

The other thing is despite a legally binding contract the lenders are not closing properties on time.  In a typical buyer and seller transaction, a closing takes place, funds and the property transfers.

In a foreclosure, an account manager might not even be in the same state. Title companies are responsible for bringing the two parties together to close. I can see it now, closing docs are sent to an account manager and stacked
on a desk with the hundreds of others.  It will be signed off on in that order regardless of a legally binding closing date.  Not surprising because banks don’t know how to sell real estate.

So, here’s a solution that worked for us. Make a phone call to the top executive.  Like the Regional President for the lender and the CEO of the title company.  You will get an administrative assistance to listen to your story and communicate it effectively.  And she or he will say:

“What do you want me to do about it?”

And you say:

“I want it closed right now!  The reason you’re in this mess is because you have treated the consumer so badly. Wake up and take care of business!  This property funded two days ago, don’t you need the money?”

And like magic it closed shortly within the hour.  So taking it to the top does work to get the customer service you deserve.  And another step that you might need to try to get something done.

About Terry Smith

Passionate about real estate, positive problem solver, specialty boutique real estate brokerage that does things your way! A full-time Broker & REALTOR®, helping people buy and sell homes in the Dallas - Plano area. Whether you're a buyer just starting out or someone with luxury properties to sell. I have extensive knowledge and experience to help you with your real estate transaction. I am a native Dallasite. Have questions? Ask me. You can find me on Google+ and Pinterest.

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