Phoenix Bank Owned Foreclosure Process Explained–Title/Escrow

Phoenix bank owned foreclosure escrow phase is slightly different

When your Phoenix bank owned foreclosure offer is accepted and you have a contract which all parties have signed it is time to open escrow with a title/escrow company. You typically have 24 business hours

Phoenix bank owned foreclosure escrow transaction process upon receipt of the fully executed file to do so and the banks will require (typically stated in all bank addenda during negotiations) escrow monies be in the form of a cashiers check only. A personal check and/or money order will not be accepted.

For out-of-state clients purchasing a Phoenix bank owned foreclosure it is common to deposit earnest money funds via a wire transfer, however, if that is the case you would typically wire the money when you return your signed copy of the bank addenda in order to include a copy of of the wire receipt with your file that is being turned into the bank for final signatures. Similarly, local buyers need to provide a copy of a cashiers check when returning their signed file.

Rarely will a Phoenix bank owned foreclosure accept a buyer signed file without proof of earnest money

The other option for the out-of-state buyers is to overnight their earnest money check to their Realtor after a copy is included with their file so their Realtor has it to open escrow as soon as the fully executed file is back from the Sellers.

After escrow is opened on your Phoenix bank owned foreclosure you should receive a preliminary title report within 5 calendar days and if there is a Home Owners Association (HOA) the title company should request a resale statement ASAP.  If you are paying cash for your Phoenix bank owned foreclosure it is a good idea to have your Realtor follow-up to ensure the HOA statement has been ordered on time because legally the HOA has up to 10 days to provide the necessary information and many times closings may be prolonged due to a delay in receiving the HOA information.

If you use the Sellers (banks) choice of title company during the Phoenix bank owned foreclosure negotiation process the Sellers will pay the buyers standard title owners policy

The standard owners policy which is normally a buyers expense for a 100K home is about $700-$750.

The following posts in this Bank Owned Foreclosure Process Explained series will outline scenarios regarding the inspection period.

The escrow process can seem confusing but working with an experienced Realtor will lighten the load in understanding the process of the Phoenix bank owned foreclosure.