Michigan Foreclosure Purchase: The Time Table to the Transaction
We have talked about a lot of different aspects about buying a foreclosure property. I realize now that I have yet to give you the most important overview people want- a timeline expectation. Let me remedy that now by explaining what needs to be done and what the reasonable expectation should be.
You found your dream home, and you made an offer, now what? Well this is the second hardest time of the entire transaction- waiting to hear from the bank. This can take anywhere from a day to a week or two all depending on what bank owns the property. The best thing to do during this time is to talk to your loan officer as much as possible. Make sure you ask to actually submit your loan to the underwriter, rather than rely on a pre-approval. This is precious time to work on clearing conditions that most loan officers will squander if you let them.
Your offer was accepted, what still needs to be done? Assuming you used a good loan officer, underwriting is mostly done. There are still many things that can’t be done until your offer has been accepted. The first thing is to get an inspection by a professional that can assess the structural integrity. This should take about 2-5 days to complete.
Once this is done and you are happy with the results the remainder of tasks should be done during the same period of time: the appraisal, title work, any water tests or pest inspections; and any conditions that come from an underwriter after viewing these items. This should take 10-15 days for a good loan officer, or 16-25 for a mediocre one… anymore than that it might be time to switch.
When can we close, when can we close?!? So, you’ll notice that you are about 20-25 days in now and a closing seems nowhere in sight. This is the most difficult part… fighting the anticipation and waiting to close. In fact, after you get a clear to close, there is still much work to be done and it is important to let it be done. You have to get a time slot to close, your lender has to get the title company a closing package with all of the documents, and after they get it, the bank will need two days to review the paperwork. Then your loan officer will need a day or two to get a HUD-1 Settlement Statement and review it. I know, at this point you would think everything would be correct, but I always end up yelling at someone right about this point in the transaction over some silly fee that was not disclosed before and working to get it waived. Be patient and plan on 5-7 days after you are cleared to close before you can close.
Well, at least that is finally it. You are right…almost. It is important to realize that when purchasing a foreclosure, you are dealing not with single person trying to sell the home to you, but with a litany of bank personnel trying to protect what little investment they have left. So even after the closing, the bank will most likely want another day to review the final documents. That means, that you will be closed, pumped and ready to move but until the money has been delivered you won’t own the property.
All said and done, a Michigan Foreclosure Purchase can take anywhere from 20-45 days from start to finish. Be willing to roll with the punches and if you are very impatient… make sure you find a great loan officer!
For more in-depth help or answers, go to our website: www.iconmortgagelending.com
You found your dream home, and you made an offer, now what? Well this is the second hardest time of the entire transaction- waiting to hear from the bank. This can take anywhere from a day to a week or two all depending on what bank owns the property. The best thing to do during this time is to talk to your loan officer as much as possible. Make sure you ask to actually submit your loan to the underwriter, rather than rely on a pre-approval. This is precious time to work on clearing conditions that most loan officers will squander if you let them.
Your offer was accepted, what still needs to be done? Assuming you used a good loan officer, underwriting is mostly done. There are still many things that can’t be done until your offer has been accepted. The first thing is to get an inspection by a professional that can assess the structural integrity. This should take about 2-5 days to complete.
Once this is done and you are happy with the results the remainder of tasks should be done during the same period of time: the appraisal, title work, any water tests or pest inspections; and any conditions that come from an underwriter after viewing these items. This should take 10-15 days for a good loan officer, or 16-25 for a mediocre one… anymore than that it might be time to switch.
When can we close, when can we close?!? So, you’ll notice that you are about 20-25 days in now and a closing seems nowhere in sight. This is the most difficult part… fighting the anticipation and waiting to close. In fact, after you get a clear to close, there is still much work to be done and it is important to let it be done. You have to get a time slot to close, your lender has to get the title company a closing package with all of the documents, and after they get it, the bank will need two days to review the paperwork. Then your loan officer will need a day or two to get a HUD-1 Settlement Statement and review it. I know, at this point you would think everything would be correct, but I always end up yelling at someone right about this point in the transaction over some silly fee that was not disclosed before and working to get it waived. Be patient and plan on 5-7 days after you are cleared to close before you can close.
Well, at least that is finally it. You are right…almost. It is important to realize that when purchasing a foreclosure, you are dealing not with single person trying to sell the home to you, but with a litany of bank personnel trying to protect what little investment they have left. So even after the closing, the bank will most likely want another day to review the final documents. That means, that you will be closed, pumped and ready to move but until the money has been delivered you won’t own the property.
All said and done, a Michigan Foreclosure Purchase can take anywhere from 20-45 days from start to finish. Be willing to roll with the punches and if you are very impatient… make sure you find a great loan officer!
For more in-depth help or answers, go to our website: www.iconmortgagelending.com
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