Legal Question in Real Estate Law in California

Purchasing a REO

I have been in escrow since April 29th, 2009. To date all paperwork has been completed. I signed loan documents this past Friday and Wired full down payment to lender on Monday morning (they received).

I have completed all requirments they requested.

Closing date (4th date) June 8th. Yesterday my selling agent sent me extension form to sign with a new date of June 15th. I asked why - her response was:

Loan agent said the bank should complete paperwork by end of day (yesterday June 9th) we may not need the signed documument.

Question:

1. Should I sign?

2. Do they have the write to hold off on this?

3. any other insight ?


Asked on 7/10/09, 11:40 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Purchasing a REO

My principal comment is that banks, S&Ls and other lenders are swamped with foreclosure-related deals and generally don't have nearly enough competent back-office staff to move various REO sales, short sales, refinancings, loan adjustments and workouts at an acceptable pace. If the deal still looks good to you, you might as well go ahead and sign so long as they are not trying to sneak in a change in basic terms favorable to them. I have one other comment. You said you wired the full down payment to the lender. Perhaps you meant to the escrow holder. If there is an escrow, all funds should be sent to escrow, not to the seller.

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Answered on 7/10/09, 12:17 pm


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