Did you know that when a buyer chooses the REO provider’s title company that they could often save as much as $1,000? Here are some things we think you should know about REO closings:
- Most REO firms prefer to work with their preferred title company that is familiar with their files to ensure their files are closed correctly. That is why they offer the buyer so much in incentives to use firms like Title One.
- Submitting HUDs/CD's is part of the REO approval process and that can add significant delays to the closing.
- The Seller typically pays for both the owner’s and lender’s title policy if the buyer closes with their preferred firm.
- Some sellers even pay $540 toward the buyer’s closing fees if they close with firms like Title One.
- Some REO firms require in the Purchase Agreement that the buyer pays for State Deed Tax and Conservation fee (fees traditionally paid for by the seller in Minnesota).
- It can often take 7 to 10 days for the Seller to process the Deed.
- CD/HUD approval takes 48-72 hours.
REO closings have the potential to be extremely complex and many REO sellers routinely experience delays and even reschedulings. So when you have an REO closing know that Title One is doing everything we can to expedite things but at the same time know that many issues are beyond our control. If you have any questions, please do not hesitate to call our expert:
Renee VonBerge, Vice President of Operations, General Counsel.