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Home goes into forclosure during underwriting???
Wondering if anyone can help me out here or have any information or know if this has happened to anyone.
We are in the underwriting process right now. We have been for about 3 weeks right now. The seller was supposed to make repairs so we could get the appraisal done. Well, the appraiser went out there anyway, and the home appraised over the cost of home. Next was supposed to be the repairs, but no repairs have been made. Then the appraiser was going to go back out and reappraised.My realtor said she doesn't think they can get the repairs ,title work, underwriting and appraisal done before the home goes into foreclosure on 5/28.
We are pissed and annoyed as we have come out of alot of money for inspections, etc.
What happens if we don't close before 5/28. I will be speaking to my realtor today, but I wanted to know if anyone has experienced this or knows anyone that has experienced this,
Re: Home goes into forclosure during underwriting???
If the bank knows there's a pending offer on the property, which will be closed soon, they'll probably extend the foreclosure proceedings, the seller's agent should have the sellers contact the bank and ask for an extention.
Talk to your Realtor and get familiar with the foreclosure process in your state. It varies a great deal, state to state.
In many states, the cank will file a Notice of Default (NOD) to start the foreclosure process. From there, it takes 90 days (for instance) before the bank auctions the home or takes possession. So, you may have time to close and remedy the default (ie the unpaid mortgage payments will be brough current through close of escrow).
Also, as the pp said, the bank may delay the foreclosure if they see that it is under contract. They may want the sellers to make some sort of payment or agreement.
Most likely, you will be able to close on the house before the foreclosure is completed. Talk with your Realtor and title co to understand the process. Again, everything varies a great deal by each state. Get specific & local info
Hope that helps, good luck!
Lighthouse State Beach, Santa Cruz.