There is no limit to the number of days a bank can hold a home once they have foreclosed on and taken possession of a property. The bank then owns the property like any other individual may own the property. The difference is - a bank's main function is not to own property - and it is not (in general) what wall street expects of banks. For these reasons, banks will typically try and unload properties quickly. It is, however, decided uniquely within each institution. I know of one bank in particular that had a number of property holdings and chose to rent as many as possible rather than sell the units. This provided cash flow to offset the mortgage payments they would have enjoyed, and enabled them to carry the properties until the market was better able to absorb the homes. Banks are unique - just as individuals are. The best decision for each may be different. Their actions will represent their goals, but common behavior should not be expected.

Patty, I believe you might be referring to the 90 days "advance notice" the bank needs to give the owners after the "Notice of Trustees Sale" before selling the property at auction.

The bank can sell the property on the 91st day, but it is not uncommon for them to wait longer than that - depending on many factors. Generally the bank will bid on its own property and acquire it back during the Trustee's Sale - after that the will put it back on the marke as an REO. Some banks put it back right away, some might take several weeks or even months. That will also depend if the bank decides to make repairs to the property (if needed).

As you can see, as many things in real estate, the answer will depend on many factors and it is on a case by case basis.


Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
http://www.SmartAZRealty.com

Hi Patty,

Obviously, the part of your question that refers to 98 days has us all a bit confused. There is no 98 day rule that is commonplace in the real estate industry.

I just ran a check of the most recently listing bank owned homes. In general, from the time of the trustee sale to the time the bank lists the home for sale is less than 30 days. This can change if there are problems with the home such as trash, damage, people refusing to vacate and such.

Once listed, most lenders incrementally perform price reductions (generally on a monthly basis) until they receive an acceptable offer. Naturally, this can vary due to special circumstances too.

We've been told by a few agents who specialize in bank owned homes that the lenders get a bit more aggressive with pricing if the home fails to sell within 90 days. This rule applies to lower priced properties more often that homes priced above $600,000 as the homes in the luxury market, bank owned or not, tend to take longer to sell.

Hope this helps a bit... Gene Urban

Patty,
The short answer is "Until they can sell it"! The banks are motivated to sell the property quickly as it ties up their valuable assets [money!].
May I help you own one at the lender's expense??
Thanks!

Respectfully,
RE Lee
Lee Christensen, Realtor
Keller Williams Realty
18940 N Pima Road
Scottsdale, Az. 85255
c760.803.8203
o480.889.7335
f206.666.5713
LeeChristensen@KW.com

Patty

Lender owned homes often show up on the market fairly quickly (30 days or less). In a few cases properties get lost in the shuffle or the banks just decide to hold it for some reason. We could possibly track it down if it is lost in the shuffle. I would need a property address and then could do some research for you. Other times the banks may have a title issue they are dealing with and will be making attempts to clear the issue prior to placing it on the market.

Lots of possibilities that are better answered with a specific property address.

Doug McVinua
HomeSmart

http://www.McVinua.com

Dear Patty:

Sounds like you have your eye on a house that has had a foreclosure occur 98 days ago. It can take many months for the bank to evict, rennovate if necessary (to sell), decide to place on the market by auction or list. Often banks do not want to flood a particular market with too many of their homes on the market at once, so they release homes on an internal schedule. Each bank is different.

I would recommend getting a Realtor to check out the particular home for you and get the facts. It does not cost you as the buyer to use a Realtor.

May I wish you the best.

Regards, Jeff

Jeff Masich, Realtor
Arizona Homes and Land
http://ArizonaHomesLand.com
JeffMasich@ArizonaHomesLand.com
HomeSmart Scottsdale

Foreclosure takes about 90 days in Arizona for bank to ultimately evict owner. There is no time limit on how l;ong a bank keeps their REO's. Banks are very dispassionate about selling their inventory so the broker working with them will be aggressive in finding the selling price reducing price at least monthly. Investors try to buy properties just before foreclosure or at auction, but those properties which are foreclosed on are sold ASAP because the bank has costs maintaining the property, hiring maintenance people, and other related costs etc.....

Patty,
There is no set number of days on the market that trigger anything new that I am aware of. In my experience, a price reduction may happen after longer periods of time on the market, but there is no time periods set on this either. The bank will continue to try and sell the home - not sure what other options you might think could happen. If I can help you in some way, please give me a call.

I agree with the other answers. There is no 98 day milestone that I'm aware of. Banks can hold as long as they want. Usually see REO proprieties come on the market in a month or so after they've been taken back at the trustee sale, but up to the bank.

Not clear on what you are asking. A lender will keep a house until it sells. Not sure what you mean after 98 days. 98 days of what??