Aarrgh. It doesn't even begin to summarize the level of frustration I've encountered with the bank-owned "per diem." What's a per diem? Well, it's a daily charge the bank charges the buyer if the buyer goes over the agreed-upon escrow term in a Real Estate Owned (aka foreclosure) home. This usually ranges from $50-100/day.
Here's the kicker: LOANS ARE JUST TAKING LONGER TO GET DONE THESE DAYS. All my buyers are super quick on getting their paperwork in to their lender, so it's really a pain in the booty when these REO banks are so quick to threaten the whole "per diem" charge. It's silly, and sometimes just plain mean-spirited!
Look, we're all working to get this transaction done, and to nickel-and-dime the buyer into paying this?? Might I add that I still have to fight to get the per diem waived EVEN WHEN my buyer goes with the requested preferred lender! FOR REALS???
Hey, I'm all for charging a slow-footed buyer if they're dragging their feet and intentionally not cooperating. But I think it's gone beyond incentivizing the timely close to too-strict, get off my junk sorta negative transaction. And who needs that? NOBODY.
I realize I'm ranting now, but there are just some things worth ranting about. So never fear, first-time buyer looking to purchase an REO -- just try your best to cooperate with your lender (and of course get a GOOD one who's responsive) and get an agent who'll do the butt-kicking for you.
Caroline Choi Real Estate
Caroline Sells The City LA