Which is the worst REO lender to deal with?

[Owen Dashner]

My vote goes to Deutsche Bank. It was almost comical how badly they mishandled the last REO I bought- from beginning to end...

[Owen Dashner]

Here goes:

- They go well past the purchase agreement deadline 4 times during the offer negotiation process.
- They have the listing agent call me the day before closing date to tell me they were all set for closing, then confirming again on the day of closing.
- I show up at closing only to find out that we can't close because the title paperwork was screwed up. Meanwhile I have already switched utilities, insurance, etc. over into my name.
- Two more weeks go by and they still can't tell me when we can close.
- Meanwhile my carrying costs are accruing from the private money loan.
- They actually have the nerve to try and enforce the $100/day penalty for not closing on the agreed upon date even though it had nothing to do with my ability to close.
- I finally get pissed enough that I cancel the contract telling them that the only way I will buy it now is with conventional financing and for $5K less than what we had originally agreed upon (my private lender was a family member who was growing increasingly nervous with the situation).
- They have the listing agent call me a week later at 2:00 in the afternoon saying that they will accept my offer only if I close that day (which I obviously couldn't with conventional financing).
- I say, "Pound sand!" and mentally divorce myself from the deal.
- They call back two weeks later and say they will accept my revised offer.
- I finally go to closing a month later.
- Total time from initial offer to closing... 4 months.

Long story longer, I guess it ended up pretty well since I saved $5K on the deal, but I was so frustrated by the end of it that I almost didn't do the deal out of principle.

REO's are fun!