We are preapproved on our loan from another bank. The house we are looking at was almost in foreclosure when we put our offer in. There are several other houses in the area going into foreclosure and many more for sale, so why would the bank take so long?
2007-05-12 06:23:59 · 13 answers · asked by mizwiz 2 in Business & Finance ➔ Renting & Real Estate
pknutsen....is the only correct one here. It completely sounds like a short sale and those can take anywhere from 1 month to 9 months to get a full approval from the seller's bank.
Short sale: When the seller is trying to sell his/her property for less than what he/she owes on the property.
For obvious reasons, this type of sale will take longer to close. The seller's bank does not want to give up their lien on the property for less than what their client owes BUT they also do not want the home in foreclosure and possibly losing out on everything the client owes. Some banks will approve these sales at the terms the purchase contract states, others will counter offer with another sale price (even after the purchase agreement has been completely executed by buyer and seller).
I had a short sale that was in escrow for 6 months. Finally got the final approval and terms from the seller's bank. My buyers final purchase price was still $50,000 UNDER appraised value!
Short sales are not a pretty transaction and can take up to 9 times longer than the standard real estate transaction BUT the end result could be fantastic for the buyer because you are purchasing a home well below market value.
Have your realtor contact the seller's bank to see what the status is and whether they've even gotten to the file yet. Your realtor should follow up consistently with the bank to ensure that the file is moving along and people are actually considering your offer. You don't want it sitting on someone's desk without even being reviewed.
Good luck and hope that you hear something soon!
2007-05-12 08:34:58 · answer #1 · answered by loansbytami 2 · 0⤊ 3⤋
No. You should have set an expiration date and time on your contract so it will automatically retract after such time. When putting a bid on a house, I will give a bank five business days to accept, reject or counter my offer. If you really want the house, I would call the bank everyday and inquire about the status of your offer. If you really want the house and you know what price the are wanting for it, by all means, pay it. If you bid $500.00 under the asking price for the house and someone offers full price, chances are that person will get the house.
2007-05-12 06:34:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Welcome to the world of the short sale! YES! It does take 6 months or longer to get the bank to respond. There are soooo many short sales sitting on the banker's desks that it takes them forever to get to them.
Not only that, you're probably experiencing delays like "the bank needs you to sign one more thing", or " now their asking for another inspection..."
Hang in there, and be nice to your realtor...it's not his fault. This is just how the process has become because of the glut of short sales and foreclosures on the market.
Ask your Realtor to contact the bank for an update. That is the best info you can get under any circumstances. Have him pry for information about the other offers that have come in to see if you even have a chance.
FYI...going through one now that has been in escrow for 7 months.
2007-05-12 06:30:18 · answer #3 · answered by pknutson_sws 5 · 0⤊ 0⤋
Maybe the owners got current on their mortgage or worked out a plan to get current. Are you sure the offer got to the right person at the bank?
Added later:
Having read the later responses, I can only say--Do business with local banks. Less red tape, better service. My bank would first try to help the current owners out of their problem. Second, not only sell at a fair price, but help you get financing if you were qualified. I am stunned that this sort of delay could be considered normal response.
2007-05-12 06:28:18 · answer #4 · answered by Spice 2 · 2⤊ 1⤋
Sometimes they misplace the offer. If they received it, they may be waiting to see if they receive a higher offer. Definately give them a call and see what is happening. It should not take that long to get an answer from the sellers bank.
2007-05-12 06:34:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
"It was almost in foreclosure..." That means the bank almost owned it. They cannot sell you something that they don't own. Check back. The OWNER might have sold it, might have gotten their finances in order and are making their payments OK now - it might not go for sale.
2007-05-12 08:02:09 · answer #6 · answered by teran_realtor 7 · 0⤊ 0⤋
No, it definitly should not take this long. I suggest giving the bank a call to find out the status and if they can't give you one, retract your offer and start looking at different houses. Good luck.
2007-05-12 06:28:23 · answer #7 · answered by ♥ Sarah K ♥ 6 · 0⤊ 1⤋
It should not take this long. Contact the bank and ask them about the status of this property.
2007-05-12 06:32:27 · answer #8 · answered by Anita G 5 · 0⤊ 1⤋
Should not take so long i bought mine had it in 2 and a half weeks it was already closed out hope this helps
2007-05-12 06:32:06 · answer #9 · answered by Anonymous · 0⤊ 1⤋
maybe its a no cuz they wouldnt take that long to get back to u or u should go ask them bout it and tell them wats going on
2007-05-12 06:27:32 · answer #10 · answered by james d 4 · 0⤊ 1⤋