How to navigate REO buying hell. Currently stuck and do not know what the hold up is.

[Tanya Solomon]

I think I am involved in a crazy REO transaction. I get that they can take a while. I get that the ppl managing the property and the transaction are not in this business and do not care. I get that I am a "pimple on an elephant ***" in that the asset management co/bank is a large entity that has the right hand doing stuff the left does not know about. But, is it usual that when you are buying an REO you can be left i the dark for long periods of time? Is it usual that you get info that does not add up and or is "cloudy?"

Can anyone guide me to a source of info on REO sales and the types of conflicts that usually come up and why?

I can appreciate that I am trying to make sense from the senseless but thought I have nothing to lose but my time to type this up and post it here. Maybe someone has info that would be helpful bc they were involved in a similar transaction? 

Id cut bait (which I can do bc we now have a violated contract due to the Asset management co letting it fall apart) but I really like the home and want to buy it, fix it up (it needs easily 250k worth of work) to live in as our primary and there just is not many homes in the area I want to buy in. 

It is an "ok" deal in the sense of how much the house is + remodeling will = what I could turn around and sell it for in this market. This is not a great bargain. 

Im TRYING to buy an REO property in an expensive golf course community in Boca Raton FL. The home has been foreclosed on 2x in the recent past. Once in 2022 and then again in Jan 2023. The home is in a costly golf course country club community in Boca Raton. Also, the HOA DEMANDS payment of 150k as either a "membership fee" (for use of the country club, golf course and other amenities) or they call it a "capital investment" (the right to charge this in their bylaws and has been confirmed by our attorney) in order to own a property in the development.

The estoppel from HOA came back with 177k we owe (we were expecting this) and 190k for the Asset management co/"bank" They were NOT expecting

History of title (roughly) -Im lucky this is in a county where docs are easily available online

1987 -The development built the home. Mr. Owner bought the home

2007- Mr.Owner puts Mrs. Owner on the title 

2010- Mr and Mrs. Owner take out a 2nd on their home. This loan appears to be related to HUD. Very likely a reverse mortgage.

2011 -Mr. Owner died, but nothing was done with the title bc Mrs. Owner was already on the title. 

2015-Mrs. Owner falls hopelessly behind on the 47k-a-year HOA dues. HOA moves forward to foreclose but I assume in some way Mrs. Owner dodged a bullet for a few more years

2020- Asset Management Co forecloses on the home

2022 -January -the HOA;Mrs Owner vs Mrs Owner;the HOA lawsuit happens and somehow some guy (neighbors, HOA and a couple of docs indicated he was a young guy that wanted to "flip" the house but was in WAY over his head) ends up on title as a result. We will call him Young Clueless Guy (YCG)

mid 2022 -YCG alls behind on bog HOA dues and HOA moves to lien, foreclose, etc. It is not clear how the HOA works with whatever Asset manager co owns/has interest but in the docs, they seem to be "in bed" HOUSE HAS CLOUDY TITLE

January 2023- Asset Management Co "takes back title" of the house by filing ownership of title but there are NO foreclosure efforts filed with YCG name. It seems like he walked away but there is nothing in writing that is filed with the county and or court to remove him officially  

As it stands now, the home is owned by an asset management company that, after acquiring it on Jan 23, 2023, turned around and listed it on the MLS for sale.

There were several bids on the home; the seller agent did a final and best, and I won. We had a 30-day closing date that all parties were cruising along and pretty compliant given the complexity of these cases. My first closing date was Feb 27, but that has come and gone. 

The snag holding up closing ended up being the estoppel the HOA returned with. We (my husband and I) were financially prepared to pay not only the HOA fees but a "buy-in" (in our case it is called a membership fee and gives us golf and country club membership privileges too) of 150k

Apparently, the seller/asset management co was not prepared to be charged this amount also when they sold the home but the HOA is demanding it. The HOA has a legal right to do this and my husband and hired an attorney that got the "bank" talking to the HOA.

The "bank" is stalling and we have NO IDEA WHY. They (Bank) have claimed that they are waiting for HUD-FHA to confirm that their company will be reimbursed but that should not hold up my deal AND I called HUD/FHA and this property address AND FHA case # (that I found on an old document) have no active involvement with HUD/FHA. HUD/FHA has confirmed this not once but twice and has given it to me in writing.

The seller agent refuses to give our attorney the Asset mngr 's info. No email or phone number. Ppl at the terrible title company that the bank chose (Solidifi=garbage title co) have been telling my agent basically gossip in that it all is just words but they claim that the title co ppl are "talking to" the Asset Mng co but the story is now going in circles bc there is no new info. 

10 days ago, the Asset mng co asked for an extension to this last Wednesday but that day has come and gone and there was not a peep out of anyone except the seller agent telling my agent he wants an extension. We are not extending anymore unless we can find out what the heck is going on. 

My attorney sent a letter over two weeks ago to inform them that they are in violation. We got back crickets except for the extension that has come and gone and now we are back to square one with us not really having a contract. 

Does ANYONE HAVE ANY IDEA OF WHAT THE PROBLEM COULD BE?!?!?