What is the average return time on seller signing?

Question

Hello BP Forums!

My partner and I put an offer on our first duplex, got our offer accepted, signed our side, and sent the paperwork back to the seller but we have not received the returned paperwork back yet. Our realtor tells us that they are waiting on a foreclosure certificate from the city but it has been almost 2.5 weeks without any word from the sellers. Our Realtor says this is extremely abnormal especially in our market (New Jersey).

Just looking to see if there was an expected time period for these things, or if anyone has experienced similar. We know we got the house (still contingent on inspection) but we're just itching to get started :)

Thanks!

Lydia S. · Answer

@Kyle Neiswender  can you elaborate on why you say you feel you have an agreement if you have signed the documents but the seller hasn’t?  If they haven’t signed, you do not have an executed agreement i.e. you only have an unaccepted offer.

Jessica Zolotorofe · Answer

Very unusual. Why wouldn't the contract go to attorney review and just be contingent on getting that certificate? Sounds like they are waiting on a better offer to me. Additionally, I don't know what a foreclosure certificate from the city is... wouldn't you have the deed that shows that the seller owns the property?

Allan Szlafrok · Answer

@Kyle Neiswender  I had a similar situation happen in NJ a while back where the bank accepted my offer, signed and all, and then it turned out that we couldn’t close because there was a deed restriction on the property and it couldn’t be transferred for another year . Instead of staying in contract for a year and them holding onto my deposit we cancelled the contract and I wound up buying it a year later. I’m assuming this is an REO property and the seller jumped the gun on listing it before having all the proper paperwork filed. It happens once in a while. If the realtor has any ethics at all he won’t be entertaining other offers because at this time you don’t have an accepted offer and aren’t in contract. It’s probably not the realtors fault it’s the sellers for trying to sell a house they didn’t exactly own yet. Hopefully they resolve it soon and you get the property.

Wayne Brooks · Answer

As mentioned, you do Not have a legally accepted offer.  I assume that the seller bought it at some type of foreclosure auction......a mtg foreclosure or tax auction?

Kyle Neiswender · Answer

@Jessica Zolotorofe Your thoughts on the contract to attorney review is what I was thinking. Unsure why it hasn't moved but this is our first time through.

After some research it looks like the house went into Lis Pendends back in 2016 and the home was sold to the mortgage company in November of 2018. I'm uncertain as to why there is any hold up to be honest.Thanks for reaffirming our thoughts on this everyone.

Kyle Neiswender · Answer

@Lydia S. @Caleb Heimsoth Thanks for the info. I'll go digging into what the process is for the town we're looking at and check to see what might be going on. I'll definitely get that signed version (my Lawyer and a few other folks need it anyway).

I'll reply back here once we hear more.

Caleb Heimsoth · Answer

@Kyle Neiswender. I’d say that’s pretty long and abnormal.  Unless it’s signed nothing is official yet.

Once you’re told it’s signed make sure you get a copy of it.

Lydia S. · Answer

@Kyle Neiswender  I do not have experience in this arena, although a google search for foreclosure certificate gave me this:

A certificate of sale is issued to a buyer when she purchases a foreclosed property. Although it doesn't signify the buyer's ownership of the property, a certificate of sale entitles the buyer to receive the title or deed.

Others should chime in for better information.

A listing agent really should not have a property listed on the market unless it’s ready to change hands/ ownership details are established, however that may differ with REO’s.

Kyle Neiswender · Answer

@Wayne Brooks Seller is Nationstar Mortgage situated in Texas, so I'm uncertain how they came across the property. Assumed about as far as you did.

Kyle Neiswender · Answer

@Lydia S. the realtor got the, I suppose, "official" acceptance / verbal agreement. On the MLS it is listed as "offer accepted". We've been told that they can't sign their side until the certificate of foreclosure is in their hands, which seems to be a city problem.

Personally, I'm not sure where it stands, which is why I tossed the questions out there. Do you know how long it has taken in your experience Lydia?

What is the average return time on seller signing?

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