REO (real estate owned, meaning property that the bank owns as a result of foreclosure) transactions are peculiar in several ways. Because the seller does not attend settlement they require that the HUD 1 settlement statement be sent to them days in advance for signature. Until we have a confirmed settlement date from the buyer’s bank we cannot complete this for the seller. And they want their funds wired to them after settlement. Because these sellers are corporations, they prefer to limit the number of title companies that they must train to do things their way. So, the buyers get the savings! And the seller pays for all but the simultaneous issue premium if you are getting a loan. That is the cost to prepare the title policy that protects the lender, between $50 and $150 depending on the jurisdiction. If the buyer will be living in the property, we can issue the enhanced policy, the best title insurance coverage available, all at the seller’s expense.
Does it sound too good to be true? It isn’t. Give us a call and we will send you a Draft HUD 1 based on your contract of sale.