new century bankruptcy?

Question

I AM TRYING TO PURCHASE A HOME THAT NEW CENTURY HAS FORCLOSED ON. WILL THIS BANKRUPTCY AFFECT MY ABILITY TO PURCHASE THIS HOME. ACCORDING TO MY AGENT THEY HAVE ACCEPTED MY OFFER HOWEVER I HAVE NOT YET RECEIVED THE PURCHASE AGREEMENT AND IT'S BEEN TWO WEEKS.

Answer 1

Sometimes it takes a long time to get paperwork completed through a foreclosed property offered through a bank or mortgage company. It may be two more weeks, so just be patient.

The person who suggested going around the agent doesn't seem to understand how the REO business is done. If you were to try this you might find that they won't talk with you.

Answer 2

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RE New century bankruptcy?

I AM TRYING TO PURCHASE A HOME THAT NEW CENTURY HAS FORCLOSED ON. WILL THIS BANKRUPTCY AFFECT MY ABILITY TO PURCHASE THIS HOME. ACCORDING TO MY AGENT THEY HAVE ACCEPTED MY OFFER HOWEVER I HAVE NOT YET RECEIVED THE PURCHASE AGREEMENT AND IT'S BEEN TWO WEEKS.

Answer 3

Speak to them directly. You don't need your realtor in the way. Its not a binding contract until they have agreed to the purchase agreement so without that you have nothing. New Century will still be in business for a while despite what is going on. A friend of mine is one of the VP's of the company which is based down the street from me in Irvine.

Banks want to sell the home as fast as possible. I have never heard of a bank or lender taking 2 weeks to accept a purchase agreement. This is from somebody that has purchased 7 repo's in the past 5 years. Typically an RPA is considered invalid after 3 days of non acceptance anyways!

Answer 4

I would say your agent needs to contact New Century and find out what is going on with your offer.
It is possible that all contracts are frozen at this point. I know Fannie Mae has issued New Century a "cease and desist" order as of Mar. 14th. Check out this website about other lenders going under too:

Answer 5

In addition to being in bankruptcy, they are also being inundated with a record amount of foreclosures. They don't have money to staff up that side of their business, so it will take time.

Buying foreclosures from banks is a notoriously slow process, though don't be surprised if they push you to close the minute they accept the offer. They take whatever time they feel like.

And don't bypass your agent. That's just a bad idea. All you'll do is confuse the process.

Answer 6

No. They need all the money they can get and would love you to purchase the home.

Answer 7

Unless you have finalized your deal, in writing, all bets probably will be off. Still, keep after them, New Century needs cash and you are offering them just that.