Deals Closed

So I have now closed on all 3 of my previous deals. That means that the buyers now own the houses & they are able to move in.

My first deal was the HUD property that needed a 203(K) loan to fix plumbing & other issues. Although originally we were given 60 days from contract to closing, we had to request two 15-day extensions to keep the contract alive. The extensions were because the lender needed more information about the property before approving the loan. Once all the information was provided, the loan was approved & we were able to close.

The second deal was the short sale with 2 lien holders. The second lien holder actually agreed to the sale only days before the house was going into foreclosure. The buyer, seller, first lien holder & the buyer’s lender were in agreement & were ready to go. As soon as the second lien holder agreed, a closing date and time were set. Everyone wired funds to the closing company, signed papers, & overnighted paperwork. It was a great closing because everyone was so happy that we were able to get it done before the house went into foreclosure.

The third deal was easy once Fannie Mae got the title. This house had been on the market as a short sale. The lien holder wouldn’t agree on the selling price set by the buyer and seller, so the house went into foreclosure. The bank gave the house back to Fannie Mae, who had insured it originally as an FHA loan. Fannie Mae put it back on the market with a listing agent. The buyer offered to buy & Fannie Mae agreed to sell. The buyer had done the inspection & the buyer’s lender had done the appraisal. The loan was approved. Once the bank signed over the title & it was recorded, Fannie Mae & the buyer closed on the property.

It is great to think of homeowners in all 3 of these houses!

Deals Moving Slowly

I have buyers under contract. Two got under contract in February and one got under contract in March. None of them will be closing in April. ("Under contract" is when the buyer and seller have accepted each others' offers, counteroffers, and terms of the contract.  A "closing" is when the buyer and seller get together and sign lots of paperwork. At the end of the closing, the title of the property has been transferred from the seller to the buyer.)

None of these deals are simple. One is a HUD property that needs a 203K loan to fix the plumbing and other parts of the house. These deals can take 60-90 days. One is a short sale property with 2 lien holders that need to decide how much money is acceptable for each lien holder to lose. These deals can stretch until the buyer gives up or the property goes into foreclosure. One is a property that  Fannie Mae put on the market for sale, but doesn't officially have the title yet. These deals are dependent on who actually has the title to the property.

These 3 are good examples of the real estate market these days. When there is a simple transaction between a seller and buyer, and the house has been occupied (so that you know the utilities all work), and the seller has the title, and the buyer is paying cash or can get a good loan, the time from being under contract to closing can have a length of 3-6 weeks. When there is a complicated transaction between a seller and buyer, and the house may or may not have been winterized properly (so that you don't know if the utilities work), or a bank or the government has title to the property, or the buyer has more and more papers and tasks to provide before getting loan approval, the time from being under contract to closing can stretch out for several months.

I'm hoping that all 3 of these deals go through to closings because these people want these properties and want to make them good owner-occupied homes.