In a previous post, the nuts-and-bolts differences between REO (Real Estate Owned) escrows and standard escrows were discussed. This post is designed to highlight a significant psychological difference that can help you and your clients successfully navigate the REO terrain: patience.
For a number of reasons, the process for an REO escrow can take longer than a standard escrow:
- The Seller of an REO is a Bank or Lending Institution who may have many properties in escrow at once. This means that what may seem like a simple response to a question can take days to be considered, much less answered.
- An accepted offer or contract may take several days to be uploaded onto the Seller’s online system where it will only then be listed as a “task” to open escrow.
- Banks must follow specific, strict procedures that can take longer than a standard escrow.
- Finally, the HUD process takes approximately five days after the Buyer has signed the loan.
Realtors: Realizing these differences and delays can help you keep your Buyer calm and confident while working through an REO escrow.
Buyers: Knowing it can take longer to work through an REO escrow can help make the process much less stressful.
When all parties understand how these differences add time to the process, they can sit tight and allow the escrow officers to focus their time on processing the transaction. Ultimately, your patience can lead to a successful (and less stressful) transaction for everyone.
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