Buying an REO (or Real Estate Owned) property is a little different escrow process than your standard home sale. REALTORS and buyers need to remember that they are in escrow with a bank/lender (the “seller”) and that the bank/lender has strict procedures in place to follow during the process. Here’s a glimpse into details to look out for if you’re in an REO transaction and Glen Oaks Escrow is your escrow provider:
- Escrow isn’t officially open until the seller has uploaded the contract into the seller’s online systems, it’s been signed by both the buyer and seller, and it shows as a “task” in the seller’s online system to open escrow.
- Escrow instructions, preliminary title and commission orders will be e-mailed 48 hours from the receipt of the seller’s fully executed contract.
- Loan documents must be received 24 hours before the buyer’s appointment to sign.
- Expect to wait up to 5 days from the buyer’s signing date for escrow to receive the estimated HUD approval from the seller.
- Once approval is obtained, the file is set to record the following business day after the lender’s funds have been received.
- Funds are usually distributed 24-72 hours after recording. This timing is subject to seller’s approval of the final HUD statement.
Also important to keep in mind is that communication with Glen Oaks Escrow regarding your transaction is generally most efficient via email. Email communication provides a written record and time stamp of the communication and allows your escrow officer to respond in a timely manner.
Understanding these details can help to set the proper expectations with buyers and help ensure that your next REO escrow goes as smooth as possible.
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