Want to make your REO escrow go as smoothly as possible? Here are a few tips:

Fact:

The REO escrow must close on time

Fact:

The escrow cannot be opened until the purchase agreement is uploaded to the sellers (banks) online REO system and made available to escrow to download. This can occur as late as 1-2 weeks after acceptance, which delays the escrow opening and in turn may delay the escrow closing.

Tip #1:

Upon acceptance, provide the escrow holder a copy of the signed contract. This way, escrow is able to order the reports prior to the opening of the escrow and while everyone is waiting for the signed contract to be uploaded into the seller’s system. This could be essential to the escrow closing on time.

Tip #2:

Although escrow is conducted in accordance with the terms of the contract and governed by state law, the seller controls the manner in which the escrow is processed. This is the reason that agents may not be able to choose their escrow companies when the property is bank owned. You will most likely be using an escrow company (like ours) who has been selected and approved by the seller/lender to handle REO’s. Bank approved escrow companies are required to undergo extensive training on the seller’s individualized REO system.

Tip #3:

Is anyone out there still not using email to conduct their transaction? If so, you must embrace email. Email is a basic survival skill for REO escrows. The escrow is conducted via email due to time limitations, and as stated above, the REO escrow must close on time. Therefore, time is of the essence! Email is an essential tool in support of a timely transaction.

What is a probate? A probate is a property owned by by a deceased person and is sold by his or her Estate, with an Administrator or Executor signing on behalf of the deceased person with full or limited authority. How a probate sale is handled depends on whether or not the deceased left a will.

Deceased left a will:

In the event the deceased left a will, the property falls under the Independent Testamentary Act, wherein the Court issues a Decree of Distribution of Letters of Testamentary appointing an Administrator or Executor with full authority. A certified copy of either document will be required by the Title Company to close the transaction. In addition, a letter from the Attorney will be required stating the following:

• The heirs have been notified of the pending sale of the property and their required waiting period has elapsed, with no objections being raised by their heirs. Any Federal or State inheritance taxes have been paid in full.

Deceased Left No Will

In the event the deceased left no will, the property will be subject to court confirmation with the court approving and assigning an Executor or Administrator for the Estate of the Deceased. An Order Confirming Sale will be issued by the Court, a certified copy of which is required by the Title Company to close the transaction. During the Court hearing for confirmation, the current purchase price is subject to an over bid. A third party can come in and offer a price higher than what the first Buyer is offering; this person becomes your new Buyer.