As the REO Banks own more foreclosure properties, there will eventually be more delays with their out sales. One recent delay was due to the requirement that the REO Bank needs to approve the final HUD (which review usually requires 48-72 hours). Because the REO insists on both sides of the HUD being completed, this means that the final HUD can not be submitted to the REO until the Purchaser’s lender has approve the HUD (usually this does not occur until the day before closing). As a result, although the loan is approved and funded, the recording of the deed and delivery of the keys to the Buyer may be delayed several days until REO HUD approval. Please warn the Buyer that these delays may occur!!
PS—One strategy we have used is asking for the lender’s package as early as possible and pushing the REO representative for a quick HUD approval.
Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.