Posted by Linda_H/FL on 12/5/13 5:49pm
Msg #495207

Question - what would you "assume"?

Get an e-mail asking if I'm available for an REO closing for date and time.

That's it - so I ask "Yes, I'm available, what kind of signing"

Response: "REO"

Umm...what would you assume is involved with this - an REO

I know - sounds stupid - but I've had REO cash purchases, REO purchases with loans, etc etc - that's what I was getting at but all I got back was "REO" - is there something I should have known??

Never worked for this company before...btw - so no track record of how they work.

TIA

Reply by sigtogo/OR on 12/5/13 6:00pm
Msg #495209

only thing I would assume is that its a purchase. given

that, they might want fax backs. Also, I'd want to know if loan involved or not, how many signers, poa, trust, etc. they usual suspects. good luck! you probably have a scheduler that doesn't even know what REO stands for....lol!

Reply by MW/VA on 12/5/13 6:01pm
Msg #495210

I'd have the same question. One thing if they're cash

purchases, another if it's a loan. Is the co. in SC?

Reply by Linda_H/FL on 12/5/13 6:04pm
Msg #495212

Thank you both - no company is in Florida

and since all I got back was "REO" I quoted my normal out-of-county loan signing fee (especially since it would be 65-70 miles travel), no faxbacks and same-day package drop for shipping.

Haven't heard back..LOL

Reply by jba/fl on 12/5/13 7:18pm
Msg #495226

I think she meant Signing Central n/m

Reply by Linda_H/FL on 12/5/13 7:20pm
Msg #495227

Oh..heh..okay...answer is still "no". :) n/m

Reply by Marian_in_CA on 12/5/13 6:09pm
Msg #495216

My first guess would be that it would be a cash purchase, or a cash purchase/short sale type of thing.

My next guess is that it's a purchase with an FHA 203k loan? That's the renovation loan to help rehab older/REO properties.

Reply by C. Rivera Chicago Notary Services on 12/5/13 6:53pm
Msg #495221

its either Cash or Loan...I would have asked which one

was it. Obvious the closer didn't know themselves.

Is the company listed in Signing Central?

Reply by C. Rivera Chicago Notary Services on 12/5/13 6:54pm
Msg #495222

I LOVE doing these if they're cash...fast in and out! n/m

Reply by MistarellaFL on 12/5/13 8:08pm
Msg #495229

REO (to me) means bank-owned property, so a sale

Usually a foreclosure. Most are cash sales, but some are financed.
My question would have been cash sale or financed sale.
I've been seeing more of these than refis in the last 4 years.

Reply by Linda_H/FL on 12/5/13 8:10pm
Msg #495230

Yep, that's what I'm used to -

cash purchase or purchase loan - apparently this one thought 'REO" was sufficient..

Reply by MistarellaFL on 12/5/13 8:14pm
Msg #495231

Re: Yep, that

Makes you wonder if some of these schedulers are little more than a warm body.

Reply by jba/fl on 12/5/13 10:17pm
Msg #495245

Yep, that about sums it up. JME n/m

Reply by Clem/CA on 12/6/13 9:37am
Msg #495276

asumption

You are assuming they are warm?

Reply by HSH/WA on 12/5/13 11:16pm
Msg #495249

Re: It's a sale of bank owned property

and if no loan were involved not sure what notarized docs the BO would be signing. If it does turn out to be a 203k the paper work is mucho - definitely worth an extra print fee. By the way 203k can be on any qualified property not just bank owned.

Reply by Marian_in_CA on 12/6/13 1:26am
Msg #495255

Re: It

Would there be a "BO" if it were a cash deal?

But yeah... the 203k paperwork is a bear and it can really confuse somebody who doesn't know what it is. That's why when I get told that it's an REO, I always ask if it's a cash purchase, a short sale or if there is a 203k involved. That's really important information to know because one means a pretty quick job and the other is, well... kind of the opposite unless the borrowers are really familiar with the 203k.

I see them often enough where I am... but I know some notaries have never even heard of them. I also get a lot of short sale seller packages. So, really, saying something is an REO doesn't mean a whole lot because there are so many types of things that could mean.

For those that haven't heard of the 203k, see: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou

Specifically this part might help explain:

"Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing for the rehabilitation; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point, the lender has a fully-insured mortgage loan.

...

When the loan is closed, the proceeds designated for the rehabilitation or improvement, including the contingency reserve, are to be placed in an interest bearing escrow account insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). This account is not an escrow for the paying of real estate taxes, insurance premiums, delinquent notes, ground rents or assessments, and is not to be treated as such. The net income earned by the Rehabilitation Escrow Account must be paid to the mortgagor. The method of such payment is subject to agreement between mortgagor and mortgagee. The lender (or its agent) will release escrowed funds upon completion of the proposed rehabilitation in accordance with the Work Write-Up and the Draw Request (Form HUD-9746,A)."