My two most recent closings where my buyers have bought bank owned (REO) homes have not closed on time due to delays from the seller.
Today’s closing is delayed while we wait for the seller to sign the HUD-1 Statement as they were arguing what closing costs they would or would not pay, even though we were still below the amount negotiated at the time of purchase.
A closing I had two weeks ago was actually originally scheduled for four weeks ago but the seller hadn’t cleared title. Once they cleared title they also argued seller paid closing costs – to the tune of a couple thousand dollars – and through the back-and-forth delays the buyer is no longer able to purchase that property.
For as much progress as the REO business has made in terms of being more responsive and reasonable, these two experiences point to the fact that some banks are still living in their own little world. I wish they would get with the times!
