Banks with Foreclosed Properties - Clueless
Being involved in the purchase of a foreclosed property is not as easy as you may think, mainly because banks don't seem to have a clue on what they are doing.Â I first submitted an offer for a client about 4 weeks ago, by email to the listing agent, since that is the only way he wants to deal with you.Â I got an acknowledgement of receipt and then after several emails looking for an update, with no response, I finally after 2 weeks got a counteroffer.Â Within a day I submitted a revised offer, within $5600 dollars of the counter.Â Asked for acknowledgement of receipt and received nothing.Â Again sent several emails with no response.Â Finally 2 weeks later got an email and basically we were $600 apart.Â Rewrote the offer again and sent it on to the listing agent, giving the bank what they asked for.Â Finally after another 4 days got a response with addendums attached.
The addendums are the problem.Â When a buyer reads the addendums, which I think should come in the beginning of the process, not the end, many buyers will run, because although the bank takes its own sweet time answering you in the first place, in the addendums they want everything done yesterday.Â For instance they want inspections done within 7 days instead of at least the normal 10, they want morgage commitment and closing within 30 days.Â If you don't close in 30 days, you pay them $200/day.Â Now the fact is with the changes in the mortgage process, closing in 30 days is pretty much impossible as the bank should know.Â If you try to make any changes to the addendums, more than likely you won't have a deal.
My question is do they want to sell these properties or do they just not care?Â Making this one especially bad is I don't have a live body to talk with.Â So I sent another email saying the holdup in the signing of the addendum is closing in 30 days.Â We want it changed to 45.Â How long do you think it will take to get a response?Â And the addendum states that the contract date is the 19th, although I don't have a signed contract.Â At no other time did any response from the bank deal with the dates in the contract that was sent, which stated 5 weeks for mortgage commitment and 6 weeks to close.Â Do you think this should have been dealt with earlier?
Let me know your thoughts if you ahve been involved with a bank foreclosure.