This is part C of a series of posts documenting the transaction of a REO home listed in Santa Clara on 716 Kiely Boulevard. Parts A and B discussed making the offer and the offer acceptance and the initial escrow period with property inspections and contingencies.
Since the first series of postings on this thread we were able to negotiate with the sellers, in this case Indy Mac Bank to drop the price of the home another $10,000 due to the section 1 findings and other property related issues. The seller and seller’s agent were reluctant at first but as buyers we insisted that the damage was significant enough that it warrented a further price drop. After some negotiation the agreed and the Santa Clara home’s purchase price was dropped from $400K to $390K.
We removed the property condition contingency thereafter. Financing was just removed yesterday. The appraisal for the property came in at the purchase price and we are scheduled to close Friday the 20th of March.
I have submitted all signed disclosures and addenda to the agent and am waiting for documents that Coldwell Banker requires signed back from the seller. Banks or asset management companies rarely sign anything so more than likely this will not come back to me.
The title company which is selected by the Seller is Chicago Title in Irvine CA. They send us a estimated settling sheet for the buyers closing costs, and charged the buyer $980 for a buyer’s escrow fee. This is were its important to use an agent who is detailed oriented and knows what to expect in a transaction. In Santa Clara County its customary for the seller to pay the buyer’s title insurance policy and escrow fee.
Although its customary it needs to be on the contract in order for the escrow companies and sellers to agree, especially out of area sellers and title companies. The attempted to explain that this was outlined in the contract addendum they sent out but after examining the document again there was no evidence of a buyer’s escrow fee and we referenced the original contract. They subsequently agreed and removed that from the buyers charges.
These title companies and asset managers will try to off load whatever costs they can so its important to read those REO Contract addenda closely and understand how they differ from the contract.
At this point we are waiting for the loan docs to go to title and then we will schedule a sign off. So far its been a relatively smooth transaction.