Home steps, whats their problem???

[Dick M.]

I put a Freddie Mac/ Homesteps house under contract on Feb 4th, listed at 24,900 and after very slow negotiations I got a contract for just under 22K. before closing time came they canceled the contract, saying I was late, I had to start over. To speed things up I offered the asking price. I was supposed to close March 28th, now the new deadline is tomorrow April 11. I haven't heard a thing yet. I plan to walk if not done tomorrow, has anyone else had slowness problems with Home Steps?

[J Scott]

What do you mean that you "were late?"

Late with what?

In general, REO purchases can move very slowly. Banks are notorious for not having their act together, not getting docs prepared and signed quickly, not getting to the closing table as scheduled, etc. But, they'll still hold you to the standard of getting everything done quickly.

Yup, it's a double standard, but that's the price buyers pay to get REO properties at a big discount (hopefully).

Btw, you should verify that you have the option to "walk away" and get your earnest money back. It's quite possible the addendum you signed won't give you the right to walk away and get your deposit back just because the bank is being slow.