Foreclosure in Burbank>Question Details

Beccanet, Home Buyer in Los Angeles, CA

How long does it take to hear back on a bank owned offer?

Asked by Beccanet, Los Angeles, CA Tue Mar 18, 2008

We have been working with a Real Estate agent we have great faith in. He's been honest and very competent about all the houses he's shown us so far.

Currently, he found us a house that's bank owned and we put in an offer. Our agent advised us before we even put in the offer that dealing with bank could take even longer than a week, in his experience, to hear back from on an offer. So far, it's been almost 1 1/2 weeks.

Simply wanting to confirm with other real estate agents out there that this indeed may be the case, as we're getting very anxious and might strategize to withdraw and re-submit our offer (which our agent isn't endorsing), at a lower price!

Thanks for any advice...

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Answers

14
Hi,
Karen gave a great response. Unfortunately, we are at the mercy of the banks, and the banks do not always make rational or logical decisions. What would never be acceptable by a private seller can become standard for a bank.

I agree w/ your agent....do not withdraw and resubmit.

Dealing w/ banks can be trying.......but sometimes the price is attractive.

If you have faith in your agent....let your agent do his/her job and realize that your agent has limitations in what he/she can do.

Good luck
Deborah
2 votes Thank Flag Link Tue Mar 18, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
The top management of the mortgage lending banks, hedge funds, and investment banks have committed economic treason against the citizens of the United States over the past few years by putting our entire economic system in jeopardy for the purpose of awarding their CEO's fat pay packages of hundreds of millions of dollars. The banks have no respect or regard for the foreclosed homeowners, the agents, or the buyers. The attitude of the banks top management is that the worse they treat people, the better it is for their bottom line. The worker bees that you are dealing with at the agent and bank clerk level have very little power to improve the situation but they try their best to do their jobs in spite of the senior mis-management.
1 vote Thank Flag Link Wed Mar 19, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Hi Monique -
Are you referring to short sales vs. bank owned/REO properties? I think Beccanet is refering to a property that is already lender owned.
1 vote Thank Flag Link Tue Mar 18, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
Hello Beccanet,

Back in 1998 I did a short sale that took 3 months to hear back from the bank. These days we are hearing 1 week to 4 weeks seems to be average. It may be a little more complicated if there is second too. Be patient. I'm sure your agent is working hard to get the offer accepted. The banks are swamped. So many short sales out there. Hang in there and don't give up. Withdrawing the offer and resubmitting it is not going to speed up the process.

Best,

Monique Carrabba
1 vote Thank Flag Link Tue Mar 18, 2008
Hi Beccanet,

Your Realtor is most likely not lying to you. Here in Florida at the moment we have banks that take 3 to 4 weeks to respond to an offer. Their strategy is that during that time they might get multiple offers and then they will have more than one person “bidding”.

I’ve submitted offers to which we never got a response. I always put a limit on the offers I write for my clients. Usually I discuss this with the selling agent, so he can tell me what a reasonable time might be. If you don’t hear from the bank during that time it means that the bank wasn’t even remotely interested in the offer. So going lower might not be a good idea.

If you had made a very good offer you would’ve heard from them already, so they might be waiting to see if they get someone else submits an offer. If no one else is interested they will pick up the pace and will negotiate with you in a faster manner.

Best Regards and Good Luck!

---
Carlos German
When in doubt talk, to a Realtor who understands your goals.
Am I that person for you? There's only one way to find out…
Contact me today! 407 744 7190 or http://www.rebycarlos.com
Web Reference: http://rebycarlos.com
1 vote Thank Flag Link Tue Mar 18, 2008
I am an agent that lists and sells bank owned properties exclusively. It may take up to two weeks for you to get a counter from the bank. The norm I'd say is 3-5 days, but it does depend on the property. If it was just listed very recently, and your offer came in in addition to others the first few days, then the bank is sitting on them trying to collect as many offers as possible in a week or two...This is very common. Also, if this is owned by Fannie Mae, and you are purchasing as an investment property, your offer won't be considered for two weeks due to their 'first look' program, where they only consider offers from owner occupants for the first two weeks. Either way, sit tight and have your agent follow up daily. You will hear something soon.
0 votes Thank Flag Link Sat Oct 8, 2011
Depending upon the bank who is selling the home, the asset management company and the listing agent, it can be a few days or a few weeks. Good and effective communication between your agent and the listing agent will help you to find out the time frames for this particular transaction.
0 votes Thank Flag Link Fri Oct 7, 2011
We've placed an REO offer with a bank, and they gave us the counter offer in 1 day. We are countering the counter and its taken 3 days so far. The listingg agent says there is no average, the bank replie.s when they reply. Hoping for a quick repsonse is all we can do.

If you are interested in looking at bank owned properties in Burbank or Toluca Lake areas please call me.
All the best,
Linwood Fullam
Rodeo Realty
818/207-0080
DRE # 01895482
0 votes Thank Flag Link Fri Oct 7, 2011
Beccanet,
If you are offering on a Foreclosure or REO you should be hearing back in a week or less (for most banks). They may not have responded to your offer if there was another offer that came in at the same time that was better than yours.
If your offering to purchace a Short Sale and waiting for the Bank to respond to you, it could take a few weeks and sometimes months before you hear back from the bank.
Main thing to remember is that each home that is a Short Sale or Froeclosed property (REO) has different wait times even if the same bank owns them. Unfortunately, it's a patience game and if your Agent is very competent, as you say, and this home is perfect for you, stay in contact and try to relax during the waiting stage.
0 votes Thank Flag Link Wed Sep 21, 2011
Buying an REO property can be very difficult. In the meantime, do not to get attached. If this offer isn't accepted, you will find something else.

Aram Arakelyan
http://www.housevaluecheck.com
0 votes Thank Flag Link Tue Aug 16, 2011
Short Sales take longer than foreclosure - generally up to a month
Foreclosure - generally up to a week AND most banks don't work holidays or weekends
0 votes Thank Flag Link Fri Apr 18, 2008
Hi Beccanet,
Yes, it is possible for it to take that long. We work with bank owned properties quite a bit. Our experience tells us to constantly be in touch with all parties and ask for updates of progress or degress. Our last property took about 2 weeks to hear back, however we were constantly in touch back and forth, asking for updates to know if we were still "in the running".
Good luck to you,
Lou and Alex
LA Real Estate Group
info@myLARealEstateGroup.com
http://www.myLARealEstateGroup.com
0 votes Thank Flag Link Tue Mar 18, 2008
Beccanet,

Your key words are "a Real Estate Agent we have great faith in...". Remember this. Buying a bank owned property is not for the faint of heart! Your agent advised you that it would take some time to get a response and it is. You may verify that he is contacting the bank on a regular basis. I know of one bank that won't even take a phone call from agents, only emails, & then takes 4 - 5 days to respond.

Buying an REO property can be very difficult. You should only attempt it if you really love the property. In the meantime, try not to get too attached. I know this is difficult but you have to know that there are many properties out there & if this offer isn't accepted, you will find something else.

Best of luck,

Karen Miller
0 votes Thank Flag Link Tue Mar 18, 2008
We recently put in an offer on a bank-owned house. It took us over a week to hear back. Apparently, there were 5 other offers and they were waiting for people to get back to them with highest and best offer. We bid $50K over asking and still didn't get the house, so not sure if lowering the price of your offer would help you. Has your realtor gotten any clues as to where they are in their decision process. We had our realtor call everyday. Good luck. Be patient if you really like the house.
0 votes Thank Flag Link Tue Mar 18, 2008
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