This week has brought one of my biggest frustrations as an REO listing agent not once but twice- the dreaded lack of deed.
Where I live in Ohio when a bank forecloses on a property it goes to sheriff's sale, and then the bank must pay the sheriff for his services and have the deed recorded so the foreclosing bank can sell the property.
This can be a lengthy process and many banks start to market and even put properties under contract before they have the sheriff's deed in hand. When the buyer is ready to close they are often told "sorry, not yet."
A client today is going to lose his rate lock because of this problem- the bank was adamant they must close by the end of the month and now we are dangerously approaching that deadline and the buyer is being asked for an extension. No deed, no closing.
In this area this isn't always the bank's fault. The sheriff has a couple weeks to record the deed once they get everything they need from the bank and because of the huge level of Ohio foreclosures they often take as much time as they are given. They're overwhelmed with properties to handle.
So, if you are buying a bank owned property in southwest Ohio please keep in mind that just because your contract states you are closing on a certain date, your seller may not be ready.
