Word to the wise, if you are purchasing a foreclosure that is winterized, try to arrange for the appraiser to go to the house when the utilities are on. Other wise, you will have to pay for the appraiser to go a second time to certify that the utilities are on and functioning. Dorit Katz, a local REO agent for Realty Teams in Pomona says, "The bank will pay to have the home de-winterized temporarily, once the contract is signed, if there is a clause in the contract subject to a home inspection. Therefore, she suggests having the appraiser go into the house a day after the inspection so that it can be canceled if the home fails inspection."
Last Friday, we were hit with a momma of a snowstorm with very windy conditions causing numerous power outages. Thank You G-D for that storm!!
We had a foreclosure purchase deal in our office. The file was the epitome of "Murphy’s Law". The home “under appraised”. The client’s tax returns were filed late causing a needless denial because the IRS showed no records of any return being filed, which we then reversed. The underwriter questioned the assets and the income because our client was complicated. We worked through all the issues. Our file was 287 pages thick!!! Then we got hit with a deadline. The attorney asked for an extension and was denied. We were informed that the deal was off if this file did not close by February 26, because the foreclosure bank wanted to move on and was actually changing attorneys offices because they had transferred all their unsold properties to another entity. What a Mess!! This all happened On February 19th. The only condition left was that the appraiser had to go to the home to verify that it was de-winterized. A whole chain of events had to happen. The Realtor had to schedule the plumber to do the job, and then we had to schedule the appraiser through a management company, who then had to schedule the appraiser, who then had to submit the report to the Management Company, who after review would email it to me. The earliest we could get the appraiser into the house was Wednesday and the Management Company only gave us the appraisal on Thursday evening. Underwriting cleared the file Friday morning but we couldn’t get the closing documents until Monday or Tuesday. We ran out of time. Then we had SNOW!!
Because of the bad weather and power outages, we got an extension and the file is closing day!! Whew that was a close call!!
I guess the lesson is, To close a mortgage loan today takes not only skill, but also good LUCK!
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