Closings on foreclosed properties being delayed

Many buyers who have accepted offers in place on foreclosed/REO homes are receiving information from the Title Companies handling these transactions that the closing will be delayed if the lender involved is GMAC Mortgage, a division of Ally Financial, JP Morgan Chase and Bank of America.

On Monday I received information that title companies had growing concerns about the insurability of the title of properties listed, by several lenders. Until these defects have been remedied, they would be unable to proceed with the sale or closing of the foreclosed properties.

Throughout the day yesterday and again today, my agents have received word that pending foreclosure transactions involved would need to be extended.  The extension time requested has been for at least 30 days.

Buyers and agents have good reason to be concerned as this situation unfolds throughout the area.  Additional lenders could become part of the slow down as questions about their process and procedures arise.  During our meeting on Tuesday, pre-foreclosures and short sale transactions were discussed as being an alternative for buyers who want to avoid the uncertainty facing the foreclosure market.

As additional information becomes available I will share it here.  Please feel free to contact me if you are considering selling or purchasing a home in Central Florida and want to be updated on all related real estate news.