up to 120 days to close, so it is normal for the delay, usually when you have REO, title search take more time, because all the lien attached to it must clear out before you can close, you should be thankful the bank did not rush into closing and you end up with the bill.
I had a REO one time, it is a HUD repo, HUD clear most of the liens and did not pay a sewage bill becasue the city did not file it as a lien, so I end up paying for it, it was over a thousand bucks.