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So my offer on a REO condo was accepted and I have given the earnest money and signed contract with seller addendum yesterday. Just received email from listing agent( to my agent) saying they just realized deed was not recorded from foreclosure and if I am still wiling to go under contract knowing the closing date will be delayed.
Their attorney needs to prepare and send the deed for recording. (me: Who knows how long that might take). The county will take 30-60 days.
Should I run or stay? It's not that I am so much in love with this place. I need to move out of my current apartment by early June. So my choice would either be looking like crazy or find another rental.
Here's a crazy idea: what if I propose to rent from the REO company until the deed issue is resolved? Is it crazy to think of that? what do I have to lose?
I think it's good for the seller as the condo is vacant now why not get some rent out of it?
Last edited by ashleyzzx; 04-24-2012 at 10:32 PM..
Reason: typo
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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30-60 days to prepare and record a deed? That seems totally outrageous. Once a deed is presented at the recorders office, it's supposed to be on record then and there. Cook County may be different, but I can't imagine they have a backlog that big.
IL agents may have a better perspective than I do as to local practice.
I am in Illinois. It should not take this long but for reasons unknown, it often can and does, especially in Cook County. This is not unique to REO properties.
What does your attorney have to say?
I'm not in IL, but I agree, we sometimes see REO not titled in the bank's name in some cases for a very long time after foreclosure (>1 year). This is why when we have buyers with prior foreclosures, we must pull the Deed of Foreclosure to show when the property was taken out of the foreclosed party's name. Chances are if you have vacant homes in your neighborhood, those homes are in this part of the food chain........getting correctly titled.
It's rare for an REO to accept a tenant, HOWEVER, new incentives have been introduced as a formal program, but I do not think this is up and running yet.
Are there a lot of available properties? What does your agent recommend? This is why you have him or her....listen to their advice.
My attorney says 30-60 days is normal. I went to county county record of deeds office in loop today and the lady at the front desk said the deed usually is in the system on the same day and it may take 2 weeks or so to show up online, but the deed is there. I am not sure if I had explained to her clearly, but this makes more sense to me. I don't get why it would take 30-60 days. Maybe for these people, they just mail the documents instead going in person and the documents then end up at the end of line?
I personally think the bottleneck might be in the seller's attorney's motivation. If they don't send the documents to the county, then nothing will happen for sure.
The bottleneck is in drafting the deed. That may or may not be the attorney's problem. Check with the bank on how long it takes them to get the file to an attorney. A paralegal can draft a deed from record within minutes, assuming no title search needs to be done. And even that, I got titles searched within 48 hours of receiving a request, with rare exceptions. Rundowns could be returned same day if I got it early enough.
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