Foreclosure in 22003>Question Details

Christine, Home Buyer in Virginia

How long does it take for the bank to answer YES or NO we will sell it to you on a foreclosure home?

Asked by Christine, Virginia Wed Mar 19, 2008

Help the community by answering this question:

Answers

13
Do you mean a home that is "bank owned" (was foreclosed on and is now on the market for sale with the bank being the seller)? If so, it typically takes 2 to 5 business days to get a response.

What Patty is talking about - a short-sale - is a totally different type of transaction and takes an average of 90 days to get a response and then another 21 to 45 days to settle if/when you get a "yes". But, as Patty's situation shows, that's only the *average* time frame - it can take up to 6 months sometimes. And the more trusts and/or banks involved, the longer it will take and the less chance you have of getting a "yes".

Danilo Bogdanovic
http://LoudounScene.com
http://LoudounForeclosures.com
1 vote Thank Flag Link Thu May 28, 2009
Hi Christine!
I wish there were a 'blanket' answer to this one. However, when the bank is involved, this will vary. It depends on many factors, such as how skilled is the bank's negotiator? How many people does this pass back and forth through prior to going to the bank, etc., etc.? I have buyers who have been waiting on bank approval from a bank for a 'short sale'. We wrote a strong offer in January - and we are STILL waiting. As the buyer's agent, my hands are tied. The listing agent (for the sellers in 'short sale,') is the only one permitted to contact the bank's negotiator, and that's been less than amazingly slow, as that negotiator is quite lax on returning phone calls to the agent...SO - we wait...

I wish there were better news...sometimes this CAN go quickly...but it depends largely on the individual bank's policy/procedure in handling short sales and/foreclosures.

Best of luck to you!
Jennifer
1 vote Thank Flag Link Wed Mar 19, 2008
The answer for most of these questions is: it depends. Whenever you have direct communication with the decision-maker, the answer should come within 3 days. If you don't have direct communication (short sale, estate sale, bankruptcy, etc.) the time frames vary widely.
0 votes Thank Flag Link Fri Apr 29, 2011
Buying a foreclosure? YOU can expect just about anything when dealing with more than one bank, think second mortgage held by another bank! There are many common complications in REO transactions. Talk to your broker and have realistic expectation. I know of one REO sale that had a contract with third party approval that did not go to settlement for over a year and was finally pulled off the market? What is that about? There are so many funny deals out there today, you must work with a experienced and reliable agent/broker. And don't forget the unexpected cost to the buyer, read the contract, question everything!
Like Danilo answered, you could get an answer in 2 to 5 busisness days, but when are you actually getting to closing?
0 votes Thank Flag Link Sun Jan 16, 2011
Danilo is correct. It depends on if it is a bank owned or 'short sale' that needs bank approval. The last REO I bid on took 12 days from contract to close but I'm sure that's not common. If it's a short sale, it could take a very long time. if it's bank owned and you are not hearing back, it may be that they just don't want to entertain your offer.
0 votes Thank Flag Link Sat Feb 27, 2010
weeks and sometimes months. I put in 8 offers on different foreclosed houses before buying an owner occupied home last month. those banks have no idea what they are doing. in one situation, the house actually sold less than what i bid months ago.
0 votes Thank Flag Link Thu Feb 25, 2010
For me today makes four months I have been waiting for an answer from J.P. Morgan Chase Bank on a short sale. I was told initially the time period would be 60 to 90 days. I was told yesterday that the negotiator for the bank had put my file into an archive file and then quit his job a few weeks ago. A new negotiator was assigned yesterday and they were told by the sellers agent that my offer is and has been the highest offer but they have said they will not accept my offer as is; that they will soon be sending me a counter offer. I don't get it.
0 votes Thank Flag Link Thu May 28, 2009
It depends on the bank. I just closed a deal that was a Wells Fargo foreclosure, the response time was less than 48 hours for everything. I'm working on another bank foreclosure and the bank's response time is about 24 hours. It also helps if you have a knowledgeable listing agent on the other end who has a great relationship with the bank.
Web Reference: http://www.MovingToNova.com
0 votes Thank Flag Link Thu Mar 20, 2008
Christine...

This is an absolute great question and I wish we could give you a very simple answer. It depends on the lender, where they are in the foreclosure process and how much of loss they will be taking.

On the short side 10 days to months. good luck.
0 votes Thank Flag Link Wed Mar 19, 2008
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Hi Christine,
I just had a buyer wait 3 1/2 months for the answers from 2 banks that had to give their approval for a short sale. A short sale is when the seller is selling the home for less than owed on the property. Banks are being bombarded with these such sells and are not equiped to deal with the volume. They usually will accept a reasonable offer but the waiting is almost unbearable for buyers.

My recent sale saved the buyers almost $75K though so it is worth it if you stick it out! I hope this helps!
0 votes Thank Flag Link Wed Mar 19, 2008
Christine, it depends on the bank and listing agent. I have had answers in as little as 1 hour and as long as four days for answers. I suppose it also depends if the bank feels like they maybe getting another offer in. Sometimes it will take a little longer if the asset manager can't go that low, but the management team can. There is not really a specific time. You just have to wait because a bank is on their schedule and not ours.

In defense of the banks though...realize that they are not dealing with a couple of these a day, but hundreds and thousands of cases a day. I know it is hard to wait, but you really could be getting an awesome deal!!!

I hope this information helps! Best Wishes!
Web Reference: http://www.gomelinda.com/
0 votes Thank Flag Link Wed Mar 19, 2008
I just had a bank and the listing agent respond to my buyer's offer in 24 hours. But I've also had a bank take 2 weeks to respond. It all depends on the bank, the specific asset manager handling the asset (property) and timing of your offer (weekend, spring break, holiday, etc).

In a nut shell, there is no exact answer. It all depends.
Web Reference: http://www.LoudounStats.com
0 votes Thank Flag Link Wed Mar 19, 2008
I wish we an answer for you, but since the lenders are overloaded with foreclosures, you'd be lucky to get an answer in at least 30 days. Good luck.
0 votes Thank Flag Link Wed Mar 19, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer