The NIGHTMARE of closing a deal overseas as a beginner

The NIGHTMARE of closing a deal overseas as a beginner

Member since 2021 · 9 posts · 7 votes

         I will try to keep this short, but unlikely lol! 

        I am from the United States, WV specifically, but I live overseas playing basketball for 9-10 months out of the year. We were in the process of closing our first deal when our loan officer shocked us with the fact that the final closing had to be done on US soil. Of course this was impossible with work, but they informed us that the US embassy is an option. The only problem with that is its very hard to take off from my job, the embassy is 3 hours away, and due to Covid only have 1 day of appointments for Notarial services per week.

      Luckily my wife and I were able to make the trip one Monday morning at 5:30 AM (12:30 AM EST so no one was awake to help us. Because of this, all of the paperwork had to be to us by the end of business on that Friday.) After signing all of the papers we were sent and mailing them back with next day international UPS shipping, we headed back home for a total of 8.5 hours of a trip. 

       After arriving home, I checked my email and our contact at the title company had written me during the drive that our paperwork was incorrect and needed to be changed. LIKE I TOLD HER THE WHOLE WEEK BEFORE THAT, I needed that information prior to the trip. We had to call the Notary  we worked with at the embassy (incredibly helpful and all around lovely) and ask for permission to change the closing location to Lisbon, Portugal rather than the Morgantown Location. Thankfully she agreed and all was well.... I thought.......

        30 Minutes before heading to my evening practice, (during the week of the championship series mind you...) another email comes through with a "heads up" of the papers that needed wet signed at the Embassy. I froze. A 53 page document in front of me that I had never laid eyes on. I instantly emailed/called everyone on my RE team freaking out. Had I missed the document? I checked 1000 times before leaving for the embassy that I had everything expected of me. Sure enough, another email comes through shortly after with, "I'm so sorry guys, I forgot to send you all of the closing documents. Is there any way you can go to the embassy again?" No. The answer was obviously no, just like I had said time and time again leading up to this disaster. We had to renegotiate with the sellers to extend closing 3 weeks when we arrive back in WV. Reluctantly, they accepted, and I believe we are good to go. I will believe it when I am holding the keys lol

  • Throughout all of this I have learned several things: My father will be getting POA for all things real estate while I am out of the country. The deed of trust requires a wet signature. Nobody prioritizes you quite like you, and I'm never using this title company again.

               Has anyone ever closed on deals outside of the country? Any tips? Are there ways to make it less of a headache? 

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Investor · Tampa, FL · Member since 2015 · 184 posts · 83 votes
5y

Is an online notary not an option like notarize or notarycam?  I have sold property while abroad using them.

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  • Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    5y

    Here is the advice you should have received from your loan officer: You can't sign with and out of country notary, yes you have to make an appointment weeeekkksss in advance to get in to your embassy if there is a notary in english with a US notary stamp and book. You need a 45 day deal and 45 day lock. Your loan needs to be final approval and clear to close on day 18 to make this work. You must open emails every day at 10 AM and 5:30 PM the local time where the deal is happening. If married you need spouse signature (wet and in person as well) Your ID in US must be current. All funds go from a US bank wired to title. You cannot wire by phone, banks want to see your face and ID so you needed someone in the US who is joint on the account or a bank that has a branch where you are in Portugal (unlikely there is one) You have to show proof where and when the funds were wired. BE super careful wire fraud is common. You may be able to find an acceptable notary on a US military base but the title officer has to approve them weeks in advance. We will fund on digital signatures, most want the wet pack back to fund. NO conventional lender allows a power of attorney for and out of country resident, far too much fraud happens. Your lender failed to communicate to you the steps needed. Your realtor isn't the go to for closing a loan you needed a mortgage banker who answers emails/texts/phone 19 hours a day 7 days a week to make this happen. I suggest you apply at another lender today as a backup your lender is not good. Don't tell them you are double applying, rates are probably better now, find out who owns your lender and complain.

  • Investor · Tampa, FL · Member since 2015 · 184 posts · 83 votes
    5y

    Is an online notary not an option like notarize or notarycam?  I have sold property while abroad using them.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y

    POA is the answer.. many Aussies when they were buying here like crazy all had POAs set up.

    little different but i was at my place up in British Columbia and had to sign a deal for Oregon.

    and found a Canadian notary.. but little did I know they are really like attorneys and they will not just notarize a document without understanding and reviewing the entire transaction.. so that NO work. like you just had to wait till I got back to the states.

  • Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    5y

    @Tanner McGrew What a pain! Smarter people than me have already recommended a POA, which seems like the best way to prevent this from happening again. Don't let it discourage you from buying more real estate! Just chalk it up as a 'lesson learned' and start working on your next deal. Thanks for sharing your experience so others can learn from it. Best of luck and keep us updated on your journey.

  • Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    5y

    I have not bought from abroad but have sold both with POA and embassy signatures. I also believe online notary works while selling. Banks are another beast though so buying with a loan is going to be trouble. I know some people here who did it here in Singapore and paid almost 1K to the embassy for the 20 signatures needed. And now getting embassy appointments is also very hard.

  • Member since 2021 · 9 posts · 7 votes
    5y

    Thanks for the advice everyone.  

    @Caroline Gerardo almost everything you said was a lesson learned throughout this experience, so you’re on top of your stuff! lol 

    @Scott Morris my lender did not allow for a virtual notary outside of the US. Man that would have made everything easier though!

    The lender allowed a POA, but in order for it to work, it had to be done at the Embassy, which was sort of the whole thing we were trying to avoid. So now that we are heading home, I have a to-do list that should cover all my bases.

  • Lender · Orlando, FL · Member since 2016 · 340 posts · 115 votes
    5y

    @Scott Morris

    Depends on the state the purchase is in.

    Soon enough these issues will be over with.

  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Tanner McGrew

    One more thing

    • POA is not a be all to end all. It has to be approved by the lender in MANY cases. Not all, but MANY.

    Covid stressed a lot of transactions.  Lenders, title companies and notaries are doing what they can, but things happen when you bring the government into the equation (scheduling with any embassy is a nightmare and has been for years, even pre-Covid).

    Stephanie

  • David FloresPro Member
    Rental Property Investor · Morgantown, WV · Member since 2016 · 236 posts · 135 votes
    5y

    @Tanner McGrew

    Was going to say! POA! That sounds like a god damn nightmare lol

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