Posted on: 15th Dec, 2008 05:51 am
Hi. My fiance and I are in the process of buying our first home. It is a foreclosure and is bank owned. We accepted their offer in November sometime and have been ready to close. The lender told us we should close early. I think he said Nov. 30th. Our date on the contract was Dec. 3rd. We've gotten everything ready on our end to close with the loan officer and everyone. But, we've been waiting on a quitclaim deed FOREVER. We were supposed to have closed weeks ago and the loan officer told us that the seller hasn't gotten the deed over yet. So, we contacted the agent and she says they were slow because of the holidays so we were supposed to close the next Wednesday. That came and went and of course we didnt' close. She then said that the bank that owns it doesn't have power of attorney and since they were bought out by Bank of America, they would have to mail off a quitclaim deed to be signed. And we've just been waiting on this to come back. I mean does it really take thisssss long??? It is now Dec. 15th and we have been waiting on this form for weeks. Everytime we contact the agent to check the status, she always tells us the same thing. She claims she has some other people in the same boat. Does this sound fishy to you???
the amount of foreclosures in this country at this time is unprecedented. lenders are notoriously slow in reacting to the need for speed when selling foreclosed properties to begin with. the current situation has them acting even more slowly and erratically.
you have every right to question this process - it's ridiculous but, frankly, it's quite common now. i don't believe there's a lender in the nation that was prepared for this much foreclosure and short-sale activity. they were understaffed and most (if not all) are still operating under the old structures, in which they had one or two properties to sell at a time, instead of the hundreds that many have now.
i'm not advocating your being overly patient, but try not to be completely discouraged either. keep on the phones and the email track to see if you can't nail this thing down sooner than later. it's an awful experience, i know. someone needs to get on your side here and demand better service, though. that may have to be your agent, who can hopefully put fear into the bank's agent. after all, they want to sell this home and you're out there wanting to buy it. why wouldn't they perform?
you have every right to question this process - it's ridiculous but, frankly, it's quite common now. i don't believe there's a lender in the nation that was prepared for this much foreclosure and short-sale activity. they were understaffed and most (if not all) are still operating under the old structures, in which they had one or two properties to sell at a time, instead of the hundreds that many have now.
i'm not advocating your being overly patient, but try not to be completely discouraged either. keep on the phones and the email track to see if you can't nail this thing down sooner than later. it's an awful experience, i know. someone needs to get on your side here and demand better service, though. that may have to be your agent, who can hopefully put fear into the bank's agent. after all, they want to sell this home and you're out there wanting to buy it. why wouldn't they perform?
Do not accept a quitclaim deed, it is worthless in this situation. Only accept a Special Warranty Deed.
If you have a contract, and they are late, send a demand letter with a 10 day time limit. If they don't respond to that, contact an attorney.
If you have a contract, and they are late, send a demand letter with a 10 day time limit. If they don't respond to that, contact an attorney.
So, to update. My fiance just talked with the bank's agent and is awaiting a call from his lawyer. He said he caught her in a lie. He asked her shouldn't it be a Special Warranty Deed and she now said that was what it was all along but that's not what she had been telling us. We even have emails with her saying QuitClaim Deed. Then, she changed that and said it's just the "foreclosure deed" that we're waiting on. So, I'm not really even sure what all that means...like I said this is our first time buying a house and my fiance is doing most everything since I cannot legally buy with him yet. We will see what our attorney says.
i dont quite understand, jlb: you "cannot legally buy with him yet." what's that mean?
the "bank's agent" probably doesn't even understand the terminology - to her a deed is a deed is a deed (perhaps). that would partially explain the confusion as to whether it's a quit claim or not.
as for the delays, they ought to be unacceptable; but i think it's the tenor of the times, regrettably.
keep the faith - but tell me why you aren't qualified, please. i'm curious about that statement.
the "bank's agent" probably doesn't even understand the terminology - to her a deed is a deed is a deed (perhaps). that would partially explain the confusion as to whether it's a quit claim or not.
as for the delays, they ought to be unacceptable; but i think it's the tenor of the times, regrettably.
keep the faith - but tell me why you aren't qualified, please. i'm curious about that statement.
Last December I lost my job due to a lay off. I went through my savings and 401K and now caanot keep up with payments to Bank of America mortgage or my HOA or anyone else. Can I quick deed the concdo back to the bank, or Foreclosure the only option?
Hi Sandra,
You can try and quick deed the property back to the bank but I doubt whether or not the bank would accept it. Moreover, signing a quitclaim deed will not release you from the mortgage liabilities. If you want to sell off the property, you will have to apply for a deed in lieu of foreclosure.
You can try and quick deed the property back to the bank but I doubt whether or not the bank would accept it. Moreover, signing a quitclaim deed will not release you from the mortgage liabilities. If you want to sell off the property, you will have to apply for a deed in lieu of foreclosure.
sandra you need to be in discussion with your lender to determine the best action to take. a deed in lieu of foreclosure may be appropriate, a short sale may be appropriate and a foreclosure may be appropriate. i think that you'll find these three choices to hurt you more and more as you go on.