We put an offer on the house 10 days ago. As we found out, the property is a foreclosure and owned by the bank.
It's been over 10 days and the bank did not give us an asnwer yet. Theoretically our offer is expired.
I've been told, that sometimes banks prefer not to give an answer for as long as they could while stretching the time expecting better offer.
Our offer was not full price. How can I expedite the process? Anyone has the experience bying a foreclosure? Why is it taking so long?
2007-10-11 07:47:39 · 8 answers · asked by tretree 2 in Business & Finance ➔ Renting & Real Estate
It is not uncommon getting response in a week or two from the bank. I just bought a foreclosed house and went through that. It took almost two months to finalize the "all cash"deal! Be patient!
2007-10-11 18:43:35 · answer #1 · answered by Phil 3 · 0⤊ 0⤋
You offer should have been submitted through a real estate agent as most banks now farm the marketing and selling of their REOs out to real estate brokers.
You should therefore check with your agent that took the offer as to the status.
If your offer was submitted directly to the bank then by all means make contact with the bank to find out the status.
I would call to check to see if they got the offer. Also I would ask them there procedures and what to expect next and the time frame in which you can expect things to happen.
If you have a real estate agent then he should know this information and should be able to tell you the procedures of this particular bank upon receiving an offer.
In most instances if the offer is not too low and no matter who submitted the offer the bank will make a counter offer.
Most banks would like to at least get an offer that covers the loan as well as foreclosure fees.
Now the best way to submit a low offer is to point out any damages that is done to the property with pictures and that the property will not get better and continue to get worse.
Banks like to get rid of property as soon as they possible can, therefore they expidate the any offers they get. It does not benefit them in any way to draw out the process.
Another thing you might include in your offer is the right of first refusal. This statement allows you to make the final offer in the event someone make an offer above yours.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-10-11 08:02:47 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
You need to contact the loss and mitigation department of the bank that owns the house. They will be able to expediate process behind the paperwork. The issue is dependent on where the foreclosure process is. Does the homeowner still own it? Does the bank? Look up the case history at the courthouse to see how far along it is. That may explain the delay since the owner might not know he still legally owns it until final court action.
Also consider proper research on your foreclosure homes, see the book below.
2007-10-12 04:29:20 · answer #3 · answered by John Rosa 3 · 0⤊ 0⤋
I run into this very frequently The short answer is that every piece of paper you send to the bank, such as an offer, has to go through several departments for approval or counter offer, rather than the decision just resting with one person. This will add a lot of time to any response. You will almost certainly get a response of some kind, but as you are outside of your contract, you have the right to terminate it if you wish. The smart bet is to keep looking while they are considering your offer. If you find something better, go for it! If not, the bank will either accept your offer or have countered it.
2007-10-11 07:54:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can bet there are MOUNTAINS of offers on the desks of the banks- the whole country is experiencing the same thing, it is not uncommon (10) days- ask your Realtor to re-write the offer if it is expired and resubmit. You cannot expedite the process- sometimes it can take up to a month or more to receive and answer. As a Realtor this is just what I would do.
2007-10-11 08:16:34 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It is taking so long because the bank moves at whatever speed they see fit. And it is never fast. You can call the bank, but they may or may not answer any of your questions.
You cannot expedite the process and it can be very frustrating. If you end up getting your offer accepted, expect more of the same while you trudge to closing.
2007-10-11 08:47:42 · answer #6 · answered by godged 7 · 0⤊ 0⤋
10 days is a blink of an eye to a bank absolutely buried in offers for "Short Sales"
You have to understand these people are stretched to the max.
They DO NOT care if you have put your life on hold.
At this point they are just trying to put out the fires.
Loss mitigators are working 7 days a week just to keep up.
10 days is nothing in their world.
If your working with an agent (doubtful) he/she should have prepared you to wait 30-90 days for an answer.
Good Luck
Terry S.
2007-10-11 09:49:34 · answer #7 · answered by Terry S 5 · 0⤊ 0⤋
In the foreclosure world a week is nothing.
I would stay on top of it but don't expect anything to happen quickly.
Those sales take anywhere from 45-180 days depending on their work load and the details of the foreclosure.
Don't quit.
2007-10-11 08:16:16 · answer #8 · answered by Sharon 3 · 0⤊ 0⤋