Many banks have set up online bidding systems and provide a response very quickly (within 24 hours). However, there are still the 2 month response times out there.

I have a couple caveats for buying a foreclosure.

#1 - The banks are holding firm to the list prices (generally speaking). They will reject and reject and reject and then lower the price to a price lower than what has previously been offered. It's not hard to see why the banks are in such bad shape. They will do this and hold a house for months, and ultimately net less, rather than just get it sold quick for more money than they ultimately get.

#2 - The addendums that a bank will send back AFTER you and the bank sign the offer is FILLED with fine print. A big stickler is the $100 per day fee charged to you if the transaction doesn't close on time. And if your mortgage is in order, it's usually the bank that is the holdup. You would think the banks would want to dump these off the books quickly, but often it is the bank tying things up. Granted, there are a lot of foreclosures out there and the asset managers are swamped, but that's their problem.

#3 - If you do not agree to the addendum, it can be a long and difficult process to get your earnest money back (just went through that, but I did ultimately get the clients money back after threats of legal action - in this case the bank representative wrote in some stipulations on the original offer after the buyer's signature). If possible, and sometimes the other side won't let this happen, try to hold on to your earnest money check until you get the binding agreement. Attaching a copy of your earnest money check may be all you have to do with the offer. I believe the rule is within 3 days of the binding agreement date (I can check if you want to be absolutely certain), but it is usually written on the purchase contract for an earlier time (one day of binding agreement).

Foreclosures aren't always necessarily the "steals" they once were. You can usually expect to pay the fair market value. If one is listed below it's actual market value, then expect multiple offers which means it will go for more than the list price. With that being said, it can be easier and you can get just as good a deal on a non-distressed property. If you're set on buying a foreclosure, make sure you have an agent experienced in foreclosures. If you're looking for a fixer upper, then those are the foreclosures you can find at bargain basement prices (rehabbing one myself right now).

Let me know if I can give you any more information. Antioch (and nearby LaVergne) have a lot of foreclosures to choose from. Someone told me LaVergne was the foreclosure capital of the country, but I haven't checked that out. Good luck!

I can only speak from my recent experience. Last month, I wrote a buyer's contract for a bank-owned property, they took 32 days to respond (Countrywide). Two weeks ago I wrote one with a local bank, they responded in two days. Last week I wrote two different buyer contracts with banks, one took one day to hear back and the other we are waiting on (we wrote it on Friday). Ultimately, I've seen them take anywhere from 1 to 32 days.

Patience and long suffering can be the order of the day. Hang in there, Shree! You're brilliant to buy now!

Hello Shree,
There are times that you will not get a response at all. If you don't allow enough response time for the Bank, you may terminate your own offer. My experience is sometimes The Listing Agent and the Assets Manager at the Bank leave offers open ended, so they can entertain multiple offers. In this case you may be asked for your Highest and best offer. This past spring I put an offer on a home for my clients less than 24 hours after the property was listed. They were really interested in it as an investment property and offered $9000 more than it was listed for to insure they would get the property. Three Days later after following up with the Agent everyday prior to that , I was told the seller ( Bank ) accepted another offer. I was suprised that my Clients offer was not Accepted. Several weeks Later after following up daily ,the property was reported on the MLS as closed. Much to my suprise again the closing price was $8000 less than my clients offerred. Figure that one out. Do you have your own buyers Agent or are you using the Sellers Agent ?

If the bank is local they will probably have it listed with a local real estate agent and you will get an answer much sooner, Monday through Friday, in our area. If the bank is in another part of the country, then it could be a week or more. Most answers from out of town banks are verbal and they do not meet time lines. Again they usually list the property with a local real estate agent. They do play by their own rules and agents never know what that may be, so we sometimes do not have an answer to a buyers questions because the bank does not get back to us in a timely manner but we do sell a lot of bank owned properties, JUST HAVE PATIENCE.

It depends on the bank as to how long but yes contracts and or offers are required to have an expiry date .My question is why your Realtor did not explain the contract to you,Banks have Realtors to represent them are you letting the sellers agent write the offer ?

Working with a bank can be difficult at best. I always advise my clients that patience really is a virtue. The agent (if) you are working with will be just as frustrated as you are. One thing that I have learned working with banks over the years is that they always play by their rules. .

Also, always follow up to the best of your ability or your agents ability with emails confirming the conversation or negotiation that has taken place. It is always better to have everything documented before you find out you need it.

Good Luck!

You will never know. ONe thing to know about working with a bank is that you will have to play there game. They may come back to you the next day. They may come back to you in a week. I would call them all the time. That seems to be how you get your response. I have also had some that do not come back at all. That means usually they did not accept your offer and are not coming back at all. If you get a counter you are really close to what they are looking for. Most of the time you wouldnt get a response. This has been my view.