Joe Nernberg,  in Calabasas, CA

Why does lender take so long to review offers on foreclosures?

Asked by Joe Nernberg, Calabasas, CA Wed Mar 11, 2009

It seems that asset managers are lax in moving homes and reducing inventory. Why? This is a tragedy that has not been covered in the media. Very few buyers will wait weeks or months for their offer to be accepted. Interest rates change and other homes come on the market. Worse, when the lender accepts an offer, the buyer is only given 5-7 days to remove his/her contingincies (home inspection, etc.). Most frustrating is one or more utilities is not turned on for the home inspection (a contract violation in California).

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Monique & Joe Carrabba’s answer
Hello Joe,

I side with you but banks are not required to have utilities on at an inspection. If the property is an REO, sure but a foreclosure/short sale it would be up to the seller. Mind the seller's agent should confirm this and not the inspector showing up at the property. Their are short sale facilitators that can expedite the process. 2 months seems reasonable and 4 months worst case scenerio. Despite how buyers may back out I think it's important to be working with a listing agent that communicates frequently through this frustrating process. Many foreclosure agents I have worked with do a poor job of keeping the buyer's agent updated on the foreclosure process. We all can relate to the issue of it taking time (banks having to loose 100-500k for giving a poor loan-has to leave these investors frustrated) but when the listing agents at the other end with the offer do not keep the buyers and buyers agent updated that is where we lead to buyers backing out.

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
0 votes Thank Flag Link Wed Mar 11, 2009
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