Following announcements that lenders were suspending foreclosure sales, Title companies were emailing real estate agents today alerting all that closing of REO property owned or serviced by Bank of America, Wells Fargo, GMAC and others would be halted until issues dealing with the insurability of the title were remedied.
A local Title representative notified Watson Realty associates of the situation. On Monday, October 4th, a memo was forwarded from Old Republic National Title Insurance Company detailing the situation and the Title rep said in part;
“We have become aware of potential defects with affidavits submitted by the servicer, in foreclosure actions, which raise concerns about the insurability of the title of the subject property. Until these defects have been remedied, we are unable to proceed with the sale or closing of the foreclosed properties.”
The sale of REO/foreclosure property has been a significant part of the resale market in Central Florida. There are over 3600 REO/foreclosure homes in Orange and Osceola County either pended or active in the local MLS. While not all bank owned property are affected by today’s news, until ironed out, these events will seriously impact the local market.
7 comments:
What some people may not understand is that this halt trickles down to good people trying to CLOSE on a foreclosed property are now not able. We were supposed to close on our home (a foreclosure with Countrywide now BAC) yesterday. We have been told of the robo-signers and told our closing is on "indefinate" HOLD. Higher up's are not realizing that the halt has stopped people PURCHASING a foreclosed home and taking it off their books. Fannie Mae is refusing to review HUD statements. Our family has been in boxes already for over two weeks as our closing was moved 2 weeks ago. We have our financing in place and ready to sign but cannot. To make things worse we have already rented out our home and will be homeless in less than 10 days unless we can close on our new home and move.
It is unfortunate that you are caught in limbo like several other buyers who have offers accepted on REO property waiting on closing.
We are receiving requests from listing agents asking for a least 30 day extensions for closings.
I have heard that at least 1 title company will close the REO transaction if the foreclosure is a year old.
The house lis pendens Feb 2009 and final judgement for foreclosure Dec 2009. We have heard that as well but then you still need Fannie Mae to sign off - which is not being done. Any idea's who we could contact to get our paper reviewed so we could close?
In my opinion you should speak with your real estate agent regarding your options and who might be able to review and assist with your specific transaction. I am confident they are in constant contact with the title company handling the closing. I would also suggest to my clients that they speak with a real estate attorney.
I was supposed to have closed a fannie mae reo 9/30, but the hoa gave me the approval paper one day late and my closing was subsequently put on hold on 10/4 due to boa halt on 10/1.
the closing agent is still waiting for fannie, but i have a feeling it will drag on for a while and i may even lose the contract if they decide the papers faulty.
The property was foreclosed back in may and the closing agent has cleared the title and everything, shouldn't fannie mae consider those cases first as they are actually losing money on those reos every day ?
Lenders and Title Companies are working on a solution. http://www.bloomberg.com/news/2010-10-11/title-insurers-are-in-talks-on-creating-foreclosure-warranties-group-says.html
I agree. Just a little insight.We will recommend foreclosure attorney who is an expert in this matter. Our website will offer much help to you. Thank you.
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