Closing bank-owned property (agent, mortgage, mortgage company, escrow)

[neo913]

I closed escrow on a bank owned property last week with the seller's title company and my mortgage company's title company present. I was told that the final package has not been received by the bank's title company. I'm in Michigan and the bank is in California. Is it common practice in these kind of transactions. I technically dont have possesion of the property yet and have paid thousands of dollars in closing costs and down payment. My real estate agent or title company cannot do a thing other than sit and wait for the bank. It has been 2 business days now. What can I do? I'm really freaking out.

[olecapt]

Originally Posted by neo913

I closed escrow on a bank owned property last week with the seller's title company and my mortgage company's title company present. I was told that the final package has not been received by the bank's title company. I'm in Michigan and the bank is in California. Is it common practice in these kind of transactions. I technically dont have possesion of the property yet and have paid thousands of dollars in closing costs and down payment. My real estate agent or title company cannot do a thing other than sit and wait for the bank. It has been 2 business days now. What can I do? I'm really freaking out.

Where is the property? In California it would not be possible for the bank to have your money without providing a good and recorded title. If you are back east who knows?

Sounds fascinating though! Normally the delivery is a recorded deed and title insurance. How can you close escrow without both being present...Hey maybe I am about to learn something. Can one close escrow withlout delivering the property?

[Gretchen B]

Is the property located in California? What is the "Close of Escrow" date on your contract? In California and other states, the paperwork gets signed and funds get deposited with the title company a day or more ahead of the actual "closing". Closing is final when the deed is recorded. Do you have an escrow agent in California that you've been in contact with? If so, give her a call and ask her to explain everything. From what I can tell, you're probably used to signing paperwork and having title during a formal "closing" there in Michigan. In California, the paperwork can be completed ahead of time with closing (the recording of the deed) on the date specified in your contract.

I wouldn't panic until after you've talked to the title company in California.