What do you think will happen to indymac REOs under contract?

Question

We have made an offer and the bank accepted offer for an REO property and are supposed to close the end of August. We have since learned that the bank we are dealing with is Indymac. UGH! Escrow has been opened, but we still don't have the full contract signed by the bank. What does everything think? Long delays? Possible cancellation?? We are ready to back out...this is so frustrating. We have locked in an interest rate of 6% (not through them) and really hate to lose that. They say business as usual, but I'm not so sure......

Answer 1

I have seen it go both ways, either it was just a little bump in the road because the parties had changed or there were long delays in getting to the closing table.   I doubt there will be a cancellation.   It'll be up to you whether you want to try to ride it out or cancel, but if YOU cancel, you may lose your earnest money.

Answer 2

I am sort of in the same boat as you are, not with indymac though. We are purchasing a short sale, we  have been at it for over two months, and as soon as the bank ratifies our contract we find out they sold the loan, and now we have to wait on this new bank to review our offer.

These banks are BS! They created this problem with their stupid sub-prime loans and then when good people (you and I) want to take a house off of the market we get crapped on. All you can do is have the listing agent for the house you are buying keep harassing the bank until you get the ratified contract.

It will be a long process. We were so sick of waiting that my Realtor got the contact information for the bank and sent them a bunch of e-mails until they ratified our contract. In the end it did no good because they sold the loan. Good Luck!

Answer 3

I think you need to be prepared for significant delays in processing your offer.  This is only one more kink in the cog and this is sure to slow the already slow process.