Foreclosure in Miami>Question Details

Katrina_sant…, Home Buyer in Hialeah, FL

How long does it take for bank owned (chase) property to respond to offer? House just listed offered asking price.

Asked by Katrina_santoss, Hialeah, FL Wed Aug 21, 2013

I placed an offer on a bank owned (chase) property I placed my offer at list price 113k with 25k down. Listing agent said that this would be a good offer,the next day he said there MAY be multiple offers so I should offer More. We were at our limit with our conventional loan offer. However we were also pre approved for more fha he told us previously the bank did not accept fha and then he told us to make a second offer using the fha. So we did an tht offer was more than list at 125k It's been a week and we still haven't heard back and he said it would take a day or two to hear back from the bank. We called listing agent and he now says if we can offer more due to the fact that a cash offer for 125 came in We told them that we could not offer anymore and then maybe we should look at other properties he then told us that the cash offer may not go through Should I wait for the banks response and if so for how long? Will I get a response?

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Dear Katrina, In 99% cases there are multiple offers on foreclosed properties and usually bank goes for cash offers. Try to avoid FHA as your chances are minimal of getting the property with this type of financing. Regarding the response from the bank it's usually 3-5 business days but it all varies. Might be longer so be patient but the answer will come through the listing agent.
2 votes Thank Flag Link Wed Aug 21, 2013
As a Chase Priority Partner (have been listing Chase Owned properties for the past 7 years) I can tell you that we are required to keep the property on the market for a certain number of days, typically 5 - 7. A listing agent is often pressure by other agents to answer questions about the course of the transaction that we are not allowed to answer:
Am I the highest offer?
What is the highest offer?
When will the Seller respond to offers?
Fact is, I have never received just one offer on a Bank Owned property, more than one offer is already a multiple offer situation. Therefore, after the property has been on the market for 5 - 7 days, the asset manager for the Bank will require the listing agent to solicit Highest and Best from all potential Buyers and will allow another 2 - 3 days for those offer to be re-submitted, then, the asset manager for any given reason can take another 2 - 3 days to accept one offer and reject the others.
In other words and to answer your question, the Seller can take up to 12 - 15 calendar days to respond to all offers from the day the property was listed.
1 vote Thank Flag Link Fri Aug 23, 2013
I may be in the minority, but before I bought this REO home, I tended to look at various properties, make several "low-ball" offers and see who accepted. I refused to be in a "bidding war"; there are too many homes (inventory) on the market. One needs to avoid being in a "must buy" situation, thus giving you more flexibiity.

I tended to look at "problem" sales, where the home was on the market for an extended period of time. You get better deals that way. It doesn't mean a bad location or poor workmanship. It just means a differing of taste. For example, a home that has fewer bedrooms but larger square footage per room tends to have a limited appeal to those folks with larger families. Perhaps, you can accept a backyard pool that is a bit irregular in shape or designed in a unique way for the previus owner. Again, those are the types of homes that are usually "problematic" and can get a better price.

In the final analysis, be firm, take control of the negotiation, and be willing to "walk away" if you receive any bit of resistence. Banks need to sell their properties; brokers need to earn their commissions. As long as you are not in a high pressure situation to buy, you are in control, and let the home sellers know it.
1 vote Thank Flag Link Thu Aug 22, 2013
That wont work in Miami Fl because you are competing with cash buyers and investors that have all the necessary experience and funds. REO's in this area are rarely sold for less than the listing price. If you have a Conv. loan or FHA is best to go for a traditional property
0 votes Thank Flag Link Thu Dec 5, 2013
Its not a clear answer but the time to respond depends on the bank and their foreclosure/short sale departments procedure for handling foreclosures. e.g bank of america may take forever.
Ive closed a short sale with Chase in under 60 days.

If the house is in an appreciating market sometimes overpaying a little is a good idea.
0 votes Thank Flag Link Mon Nov 25, 2013
It is incredibly hard to compete with cash offers, but yes offering more could work. The bank will respond. They can take up to couple of weeks to do so. Keep looking, but wait for the response.

Olja Mihic
Realtor - Coldwell Banker Tahoe City, CA
530 448 6633
0 votes Thank Flag Link Fri Aug 23, 2013
Think about it: all sales are "cash" to the bank or owner of the property. The only difference is the amount of time for closing. If a home as been on the market more than a month or so, it is not a big deal for the banks to wait a few more weeks for a good offer (as they perceive it).

Cash is king only if the sale has a bona fide "time constraint" and must be completed by a "date certain". Otherwise, the method of payment to the bank, be it cash for financing via FHA is immaterial.

Oh yes, one important element not mentioned here but should: in more cases than not, banks tend to re-sell their mortgage notes within a year or two. Hence, the terms of financing means little to the bank. They are not literally waiting all those years for a final pay-off. In fact, they prefer the interest never to stop and thus encourages re-financing if possible.
Flag Wed Sep 4, 2013
My suggestion would be to look for another property. If you are going to do FHA your offer is the least attractive one because FHA appraisals tend to be low. Any cash or conventional 20% offer is going to beat you.
By the way, please do not follow the advice of "lucky" Steve. He was just lucky or ended up buying something that nobody else was interested in. But if you are trying to get a nice house, move as fast as you can. Now, I am inclined to think your Realtor must have explained to you that you would do much better looking for conventional sales where FHA are accepted. The probability of buying a REO
with your type of loan is remote to say the least. REOs usually go to the cash buyer, they are the ones that get the deals. However, even paying a little bit more, your are still getting a good deal, since buying with FHA is another way of taking advantage of the market,
you are buying with only 3.5% down, and that in itself Is a great opportunity. Do not miss the boat!
0 votes Thank Flag Link Fri Aug 23, 2013
Good morning,

If I were you I would move on to another property and keep this one as an alternative offer. From my experience, when you're not getting a timely response most likely they are looking elsewhere. You can contact me if you have any questions. Good luck!

Alberto Baca
The Keyes Company
0 votes Thank Flag Link Thu Aug 22, 2013
Unfortunately you’ve explained an all too common scenario I see as a listing agent for Chase. Here is what I always tell people when it comes to offers for banks to review. Cash is king, then conventional loans, then FHA/ USDA and the bottom of the barrel is VA. However in my state (CA) Chase is very technical on how they want the state contract presented to them. I have found that buyers agent who do not follow these strict guidelines (even after given examples) that Chase will decline offer… even if it’s all cash. The typical turn around in the past year for acceptance is 1 ½ to 2 weeks from Chase. While I understand your frustration hanging on may be your best bet. If that doesn’t work you may want your agent to contact listing agents that list a high volume of REO properties. As a REO agent I always keep a running list of buyer or agents with buyers and criteria of what they are looking for. That way prior to homes even hitting the MLS buyer can be prepared to write offer. Also last bit of advice you may want to look for a hompath home from Fannie mae / Freddie mac. These homes typically only allow offers from owner occupants during the first 15 days. Seller on these REO’s doesn’t care if you are cash or loan they just want bottom line to be the most. Hope that helps!
0 votes Thank Flag Link Wed Aug 21, 2013
Your are being extremely patient, but it is highly likely that the bank will get and accept a cash offer for the property. REO properties are always sold to the highest and best offer.

The best offer is always a cash offer. Not a mortgage. Because there are no banks to worry about. Ironic, isn't it? Banks don't like dealing with other banks. The highest offer is self explanatory.

REOs are always multiple bid properties, and the listing usually states this. The selling agent's job is to play bidders off against one another, soliciting ever higher prices. The asking price on a good property is typically 15-20% below the original list price.

Some banks, such as the one you are dealing with, respond quickly to offers. Others banks may leave the bidding open for 30-60 days and then only respond to the highest and best bid, leaving the other bidders hanging.

Marc Jablon, the Jablon Team
Re/Max Complete Solutions
0 votes Thank Flag Link Wed Aug 21, 2013
Congratulations on your willingness to stick it out with the buying process. Without knowing all the details and looking from the outside in, usually on bank owned properties it is a 48-96 response time after the bidding is closed.

If you need anything else, feel free to contact me.

Kind regards,

Pablo Torres
AF Realty,LLC
0 votes Thank Flag Link Wed Aug 21, 2013
Thank for your seeking advice on here. You made a smart decision. You will probably get multiple responses from people with varying experience in Real Estate. I don't know all the details but from an outside perspective it seems difficult the bank will accept an FHA offer. But if there is nothing else on the table then they may move forward with yours if they can't afford to drop the price any further. I'd say just express your interest further with your agent and be patient. Usually it takes them a few days to respond once the multiple offers are submitted.
0 votes Thank Flag Link Wed Aug 21, 2013
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