REO SERVICES

Once the executed deed package and supplemental documentation is received from the client, the processor reviews them to insure proper execution and then prepares closing instructions (in accordance with the clients’ directives) addressed to the attorney or title company who will be conducting the closing and preparing the HUD-1 closing statement.

The processor calendars the file to follow up with the attorney, title company or listing agent for the following:

1. Buyer’s title commitment
2. Certificate of occupancy/smoke certificate
3. Buyer’s loan approval/commitment
4. Final utility bills
5. Scheduled closing date
6. Proposed HUD-1

As received, buyers’ certified earnest money funds are deposited into either the firm’s PA or NJ attorney trust account and PracticeMaster is noted accordingly.

The processor or REO attorney regularly updates clients via client management systems or via email with the status of the closing. The processor also follows up with the agents, attorneys, or title companies as needed to insure all required documentation is received prior to the deadlines set forth in the contract.

Buyer’s title commitment is reviewed by either the processor or REO attorney to insure title is properly vested and to insure that there are no title issues that were not previously addressed. If the commitment does reflect title issues, the processor or REO attorney contacts the client, foreclosing attorney or prior title insurer for documentation to clear title. The processor or REO attorney also prepares legal documents (Powers of Attorney, satisfactions/releases, etc.) as necessary t o clear title and forwards same to the client for execution.

Inspection and financing issues in PA are handled between the realtors and the client. Because NJ is an “attorney state,” however, the REO attorney assumes a more active role in communicating and negotiating inspection and financing issues in NJ, including the preparation of any addenda to the contract for extension of time periods, repair credits, and the like.

Once title is clear and closing has been scheduled, the processor completes a final review of the file for completeness and overnights the deposit funds, closing instructions, executed deed package and any supplemental documentation to buyer’s title company or attorney.

The processor requests and reviews a HUD-1 closing statement and “backup” (tax bills, receipts, commission statements, etc.) for accuracy 24-48 hours prior to the scheduled closing deadline and forwards same to the client for execution. The seller-executed HUD-1 is then forwarded to buyer’s title company or attorney for closing.

The processor calendars the file to follow up for the buyer-executed HUD-1 and confirmation of the seller’s proceeds wire within 24 hours after the scheduled closing.

SUMMARY OF REO/SHORT SALE SERVICES:

  • Order, Review and Clear Title
  • Coordinate conveyance with Buyers’ Attorney, Title Company and Real Estate Agents
  • Expedite Closing Date Whenever Possible
  • Prepare Deed and Affidavit of Title
  • Prepare other legal documents as necessary, including but not limited to Releases of Mortgage, Assignments of Mortgage, Quitclaim Deeds, Powers of Attorney
  • Review HUD-1 Closing Statement
  • Appear at closing as necessary