Bank Owned shouldn't take more than 1-2 days. However, with new listings they will typically wait 1 week before accepting an offer. The day before acceptance they may contact all bidders and request they submit 'highest and best'. So, being 1st offer on the 1st day will not help too much with REO listings. The new listings they expect 90-105% of asking price. If they don't receive any offers after a week or so, or only get low offers, they may lower the listing price and you can try to submit at 90% of there new value.

Low ball offers rarely work with REOs b/c they are already priced undervalue for a quick sale.

As long as the property is Bank-owned, you shouldn't have to wait more than a couple of days. In all of my contracts with bank-owned properties, I never give the bank more than 5 days to respond to the offer. If you give them 2 weeks, they'll take 2 weeks trying to get higher and better offers. Now, if you put in offer in on a Short Sale, then you can definitely be waiting 2 months before hearing anything. Yes, I know it's dumb but the banks need a month to cope with the fact that they gave a mortgage to someone who couldn't afford it. But as you are patient, their loss will be your gain in the end. Keep you head up high, and good luck.

Hi Lathe,

I am associate with WaMu selling bank owned homes. The response is slow since they are transitioning and merging with a different servicer ( servicer meaning a different company/ system to receive offers, communication with the realtors etc etc) The transition is slow. Right now they are running 2 weeks. Keep following up with your Realtor on a status. Its frusturating right now, but they are trying to process the offers in the REO department while getting on board with a new system. Everything is automated now,(or will be) but in the long run, will make the process smoother. I work with other lenders where we get a response in 2-3 days. I wish you luck! :)

Weeks is the optimistic estimate. You could be waiting for 2-3 months for an answer. There are several factors that determine the wait time. One of the key ones is the home value. The higher that value, the higher up the food chain at the bank the approval has to come from. Another factor is the offer. Is it close to asking? If so, you could get a reply quicker. If it is way under, it will probably take some time.
Banks are swamped with REO's and pre-foreclosures. They have a greatly increased work load and reduced staff because of their financial woes.