Foreclosed Home buying process and legal terms...this is a mess!?

I am not a stranger to buying foreclosed houses for investment but I have run into a deal that has really thrown me for a loop. I made an offer on a bank owned property that has been off and on the market for I bet going on 2 years (red flag #1). I figured I’m out nothing to make an offer and see what happens. The home is valued at $269.000 but conservatively it’s a $200-220,000 home in this market where I live. I offered $110,000 for the heck of it and was surprised to be countered at $115,000. I took the deal and gave them $1,000.00 earnest money. The purchase agreement I signed was signed by “the seller”….we don’t know who…just a non-legible bunch of squiggly lines with no title of who the signature belonged to (red flag #2).



The deed holder is a Bank in New York. They handed it off to another mortgage company that then handed it to another company who apparently has the signed deed sitting on their desk. I have been in contact with this company personally and they tell me “we can close”…BUT without having a “POA”. They don’t know who can sign for this place!!. My banker requested a copy of the deed to present to loan committee (in house loan). They say they will fax it but never do. I don’t understand how they think we can close if they don’t have someone with power of attorney. The term witness closing was tossed around but I don’t know in what context they were discussing it. Does any of this sound familiar to anyone????Foreclosed Home buying process and legal terms...this is a mess!?
I believe you are going to have to contact the deed holding bank directly. They are probably contracting with the company holding the deed physically to take care of this and have no idea that this second company has no idea what they are doing.



The second company may also be overwhelmed and/or understaffed and can't perform. Have you talked to a manager at the second company?