When it comes to bulk REO deeds, the famous saying "the squeaky wheel gets the grease" does not apply. In this article you'll learn why and also what you can do about it.
Let's look at the scenario where you have a cash buyer for a property that you purchased as a bulk REO, but you can't close because you don't have the required deed for the property. Should you call the asset manager or the bulk REO list broker? You will have much better results if you directly call the bulk REO list broker. The broker is responsible for getting you the deed as soon as possible. The asset manager does not want to talk to you, they talk to the bulk REO list broker.
This is very important. Assets managers do not talk with bulk REO list buyers. They will be annoyed by your call and your deed will end up going to the bottom of the processing pile, exactly what you don't want to happen. Now this is not fair, but it happens all the time.
If you find yourself in a situation where you must have the deed, make sure to call your list broker and let them be the one to call the asset manager and escalate the problem.
In the meantime, there are 3 things you can do:
- Don't let the property age just because the current buyer is a deed dependent buyer. Continue to offer the property for sale at your terms and get another offer.
- Another option is to offer the cash buyer a contract for the deed. This gives the buyer full use and benefit of the property. You can adjust the terms of the sale to 75% down and 25% due at the time the deed is transferred.
- Understand that deed fraud does exist so the buyer has a good reason to be concerned. You can give them an affidavit of sale to prove that you do own the property. Your list broker can help you with this scenario.
Why do deeds take so long to get?
It can be difficult to track down deeds on bulk REO properties because they are foreclosed properties, the properties people walked away from and that no one else wanted. Then when the deed is located, a new deed needs to be produced. Each county and state can have very particular requirements. Next the deed needs to be recorded. This step can take up to 6 weeks for the recorded to record the deed. That's correct, up to six weeks.
But that's not all! There may be more unavoidable delays. It can take months for a property to be recorded in your name In addition to the six weeks required for one deed to record, some titles are transferred from the asset manager back to the bank and then to the list buyer so the process is magnified.
Take a look at this process from the asset manager's office. They process 1,000 or more deeds at one time. Now the clerks get paid so you don't need to feel sorry for them, but do understand that the amount of paperwork can be overwhelming.
If you need more information visit our site: deed in lieu of foreclosure