Want to make your REO (Real Estate Owned) escrow go as smoothly as possible? Here are a few tips:
The REO escrow must close on time.
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.
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.
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.
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.
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