Home Buying in Tucson>Question Details

Georgeek, Home Owner in Tucson, AZ

How long does the reo seller have to make a final decision on multiply offers?

Asked by Georgeek, Tucson, AZ Tue Nov 27, 2012

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23
There is no set time limit. Welcome to the world of buying foreclosures where the Seller (bank) makes all the rules, takes whatever time they want and you the buyer have to bend over and take it.

I've dealt with foreclosures sales for over twenty years, and if there's one thing I've learned the only thing greater than the arrogance of the Banks and the asset managers who "handle" disposing of foreclosed properties is their stupidity. Foreclosures are rarely the deal buyers think their getting, and most would be well advised not to buy them.

See the link below for more details on buying foreclosures.
3 votes Thank Flag Link Wed Nov 28, 2012
As long as they want to. I currently have a REO in escrow, representing the Buyer. The Seller has been consistently ignoring any dates which are in the contract, but of course they expect my Buyer to comply with the letter of the same contract. It can be very frustrating.
1 vote Thank Flag Link Tue Nov 27, 2012
There is no standard time frame. It's all negotiable.

If you are in a multiple offer or counter offer situation, there is a specific time frame in which the seller has to respond to your offer or your offer is considered withdrawn. It is on the multiple offer/counter offer form.

That is to say, when you make your offer/counter offer, you control when you want a response from the seller. It makes no difference if the seller is a human being or a bank/lender. Sometimes lenders have their own forms, but there should still be a time frame in which they must give you an answer.

If you are using a Realtor, they can often get a feel from the listing agent how long the bank/lender may take to respond, and you can tailor your offer to match the situation.

Hope that helps!

Jo Ann
1 vote Thank Flag Link Tue Nov 27, 2012
Unfortunately, as long as they want. You can request a response within a certain time frame but if they don't comply and you still want the property, you will just have to wait for their response.
1 vote Thank Flag Link Tue Nov 27, 2012
I worked with REO/Banked Owned sellers for almost three years as a listing agent. Unfortunately, they are working on their own timeline. This means there is NO set parameters expect for YOU to respond. You and your agent can attempt to push the negotiations forward with a few simple tactics.
0 votes Thank Flag Link Fri Jan 4, 2013
The short answer is "as long as they want". They have no feeling or emaotion in the process and have a huge number of properties. So when they get to it the get to it. Si if you like the property stay on it. If it is just OK then set your own time and pull out when they exceed your tolerance.
0 votes Thank Flag Link Fri Dec 28, 2012
The generally asked for 3-5 days , but they do not always follow the time lines. It has to do with whether there is MI involved and how many doors the asset manager has to knock at in order to apprve the offer.
0 votes Thank Flag Link Thu Dec 27, 2012
Larry has provided the unadorned, bare naked reality...the banks are too big to fail and too big to care. They REALLY don't care what is included in your purchase offer. Their 19 page addendum will supersede everything and strip the buyer of all protections. It is no longer their money or asset they are working with. I especially like the arrogance/stupidity statement.
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However, the reality is these sellers of stolen real estate have multiple revenue streams emanating from these situations. Now, with big real estate investors like Blackstone who have announced budgets to ONE BILLION DOLLARS to buy real estate, they have the option of letting these volume/bulk buyers cherry pick the inventory, as they stall the process. It is unfortunate we can not see behind the curtain to observe what is taking place in the REO arena. The lack of transparency is a true breeding ground for the vitriol that is so rampant.

The ideal buyer for distressed properties are 'STATISTICAL' buyers, (if the numbers work) not emotional, end user buyers.

How long do they have? However long they want. Period.
This is an abusive process, and all you can do is grin and .....well you get the point.
0 votes Thank Flag Link Wed Nov 28, 2012
TU to Larry for the best answer, when he states,” I've dealt with foreclosures sales for over twenty years, and if there's one thing I've learned the only thing greater than the arrogance of the Banks and the asset managers who "handle" disposing of foreclosed properties is their stupidity.”

Wish I’d said that.

There is no “normal” time frame as stated below in numerous ways. The only “norm” here is that the bank will do what they want to do and it’s their way or the highway.

Here is a post that may be helpful:

How To Buy An REO – Top 17 Questions Answered
http://www.trulia.com/blog/carl_medford/2009/04/how_to_buy_a…
0 votes Thank Flag Link Wed Nov 28, 2012
Amen Brother Larry!!! I didn't care for banks much before I became an agent, but after dealing with them on Short Sales and Foreclosures....let's just say my respect for them has declined. My favorite foreclosure trick is when they just sit on offers indefinitely hoping a better one will come along. Very frustrating, especially for first-time buyers who see a foreclosure as the only property they can afford.
Seems to me the banks got us into the mess we're digging out of today with careless lending practices and now they are mad at consumers and going to make them (consumers) pay for the mess they (banks) created. Has to be a pretty sweet deal to make it all worthwhile...
0 votes Thank Flag Link Wed Nov 28, 2012
It depends on the seller. Some times it is one day sometimes a week. The response time should be on the multiple offer counter and must be adheared to by the potential buyers but not always by the seller. It can be frustrating.
0 votes Thank Flag Link Wed Nov 28, 2012
It depends. I have seen response time on REO's the same day I have made offers and I have seen timeframes up to 4 weeks. It depends who is the person making the decision representing the REO and unfortunately they do not always comply with the State of Az Real Estate Contracts. For more contact me at AzProperties@Ymail.com
0 votes Thank Flag Link Tue Nov 27, 2012
An REO seller is a seller just like any other when it comes to your question. The purchase contract defines a date that the seller (REO or not) must respond by or the contract in technically void and the buyer cannot be bound by the seller signing it after that date. No seller is required to make a final decision in a certain amount of time on an offer. It is just normally in their best interests to do so. This is true whether there is one offer or five. When a seller accepts a contract after the offer has expired, it is basically a new contract initiated by the seller that the buyer has a chance to accept or reject.
0 votes Thank Flag Link Tue Nov 27, 2012
Usually they do it quickly because they want it off their books. Hope your not referring to a "short sale" which is a completely different story. http://www.naplesrealestateguys.com/blog/foreclosure-scams-a…
0 votes Thank Flag Link Tue Nov 27, 2012
Hi Georgeek,
The response time varies from one reo Seller to another. I have seen a three days response and I have also seen a six weeks response. Sometimes it pays to be patient. The deal is all worth it, if eventually you are the lucky winner.
Wish you all the best,
Grace Adewumi
Realty One Group
602-769-0890
gracea@realtyoneaz.com
http://www.house2buyorsell.com
0 votes Thank Flag Link Tue Nov 27, 2012
As long as they want. Some respond very quickly and others seem to take forever.
0 votes Thank Flag Link Tue Nov 27, 2012
The response times are largely ignored by REO sellers. I have seen acceptance in as little as 2 hours, and I have seen them take 10 days or more. In some cases, they do not respond at all or even acknowledge that they received the offer. A good realtor takes nothing for granted and follows up. The realtor may or may not receive a response.
If multiple offers do not meet the Sellers perceived value, they may choose not to accept any of the offers.
It is "part & parcel" of buying distressed properties.
Keep in mind, even professional investors may lose 5 or more times before being the high bidder resulting in a contract. Not all contracts result in a sale.
If you have other questions, I am available to help.
Doug Seemann
520-370-8907
Dougs@longrealty.com
0 votes Thank Flag Link Tue Nov 27, 2012
There is actually a second question hidden here:
"Will I ever hear back from the Bank if my offer is not accepted?"
The answer; probably not; you will mistaken the silence for then "thinking " about your offer, when in fact, they have probably move on.
0 votes Thank Flag Link Tue Nov 27, 2012
Every REO seller is different. I have some asset managers that respond as soon as I put in all the multiple offers into the system. Some times a day or two then some take a week. What might be happening is the seller has decided on one and is getting all the paperwork from that highest bidder and keeping the other offers in line just encase the first offer does not preform. If it has been a long time I would assume that this is the case. Another thing to consider is the seller might just be the servicing company and have to get final approval from the actual lender. For instance Wells Fargo services several loan companies. In order for them to make a decision they need to go to the actual lender and show all the offers that they have on the property. Then the actual lender needs to decide which is the best deal for them and then get back to Wells Fargo with their approval. Then Wells Fargo informs the highest offer they won the bid and need to get the required paperwork in.
0 votes Thank Flag Link Tue Nov 27, 2012
Talk with your agent or Realtor. A seller, any seller is suppose to reply by the date on the purchase agreement. However, after working well over 30 REOs in the past 6 years, depends on the bank, the asset manager, and sometimes the listing agent.

Good luck.

Spirit


Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
SpiritRealty@Cox.net
0 votes Thank Flag Link Tue Nov 27, 2012
As long as they want. The bank can require prospective buyers to submit their highest and best offer in 24 hours. Buyers will sign any documents and waive any rights as required by the bank. The buyer can not expect the bank to follow any rules or meet any deadlines.

Donna Moulton
Associate Broker
Tierra Antigua Realty
http://www.SweetDesertHome.com
0 votes Thank Flag Link Tue Nov 27, 2012
It can take a while, In some of these cases the agent that listed the property should sent out a multiple disclosure to all agents who submited an offer and have them submit best and final and give them a time perid to respond. Once you get the best offer the agent should proceed to submit that offer to the bank, Then it is a waiting period on bank approval
0 votes Thank Flag Link Tue Nov 27, 2012
Kate is correct. They take as long as they want. On the other hand it does not hurt to have your Buyer's agent bug the listing agent.
0 votes Thank Flag Link Tue Nov 27, 2012
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