Bank Owned. Is this SOP?

[ajinaz]

What is the name of your state (only U.S. law)? Arizona
We are trying to (or we already did) purchase a bank owned property (Wells Fargo). We put in an offer, offer was accepted, we got our financing in order and we went to Title on Friday. We signed all of the papers and handed over our 20% down payment. Our Realtor told us that with these kinds of sales we had to wait 24-48 hours for funding to happen before they could release the keys.
We called yesterday (Tuesday) to ask when we could get our keys and our Realtor said that "we are still waiting for the seller's bank to give final approval."
Is this normal? It's been over 48 hours now and we have some concerns. What would happen if they give us the keys and the house has been broken into? It has now been sitting empty since Friday with our names on it. I realize that this is unlikely but if this is standard operating procedure, it is bound to happen sooner or later to some poor buyer. In my area it is the norm now for empty homes to be stripped bare. What is the point in a final inspection if we don't get the keys until almost a week later? At this rate it could be longer than a week I guess.

 

[FlyingRon]

I'm confused as well. If you had the certified funds at settlement, there's nothing for the "seller's bank" to approve. The property should have been yours at closing. Are you financing from the owner bank as part of the deal?
All the "approval" on their side should have been before they accepted your purchased offer. Contact a lawyer.

 

[ajinaz]

No, I have my own financing from a different lender. However, they already have an agreement to sell the note. (Coincidentally to Wells Fargo).

 

[nextwife]

Weird. I handle REO sales at a bank, and by the time the deal closes, and is ready to disburse, we are way past "approval" stage, and the original conveyance docs are at the title company. Was there a change in the closing statement that necessitated going back to the seller?

 

[ajinaz]

No changes at all. Still no keys but the realtor said that it should happen tomorrow.

 

[justalayman]

Our Realtor told us that with these kinds of sales we had to wait 24-48 hours for funding to happen before they could release the keys.
We called yesterday (Tuesday) to ask when we could get our keys and our Realtor said that "we are still waiting for the seller's bank to give final approval."

this makes no sense. I have no idea what the sellers bank is doing concerning approval as the signing of the documents at closing was approval of the sale. As far as funding is concerned, that is something your lender deals with. They are speaking of the bank (your bank) having actual access to the funds whether it be from internal sources or a funding company. If your loan isn't funded for some reason, there is a problem with your side of the deal. If that is the case, the closing should not have taken place. That is the only reason I can see there being a hold-up in this deal.


In looking for some info concerning this, I did read something about Fannie Mae demanding a review of the borrowers status immediately prior to closing to be assured nothing has changed from when the loan was first approved.

Did you do something very recently that would have affected your credit or income to liability ratio since your loan was approved?

If this was the case, the closing should have not taken place though.

I'm out of ideas.

 

[FlyingRon]

Why would that have anything to do with the sellers bank? If the lending bank has made the funds available to whoever is holding escrow, things should be happen.

If the deed has been recorded by the escrow house, screw the obstinate agent. Take possession if you have to call a locksmith. Something is quite not right here.

 

[ajinaz]

Keys were delivered this afternoon. Still have no idea what the holdup was but thanks everyone for your advice.