Home Buying in 07757>Question Details

Goodie716, Home Buyer in 07757

I am looking to make an offer on a bank owned home, but know that sometimes the response time is very slow on

Asked by Goodie716, 07757 Thu Aug 6, 2009

a bank owned property. Would putting a time restriction on an offer be a bad thing?

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Goodie716’s answer
Hi Everyone!

Thanks so much for all your advice. I am going to be making an offer on the bank owned home today. With the assistance of a family member, I will be putting in a cash offer in hopes that this will speed up the process.
1 vote Thank Flag Link Mon Aug 10, 2009
Do not cofuse what Jose is calling a "negotiator" with an "assigned bank negotiator" within the lending bank as I was referring to. Jose must have some kind of person that works in his office that calls themself a negotiator.

Your agent or you do not need to employ the services of a "negotiator". These people have just recently popped up in the current market and call themselves specialists in Forclosures and Short Sales. I would avoid that particular negotiator. Your agent, with some experience should be able ot handle the short sale for you. Otherwise find an agent that has experience in short sales..
1 vote Thank Flag Link Thu Aug 6, 2009
Bank owned and stuck in limbo is pretty much the same.. usually, sometimes and possibly.

The whole deal depends on the bank, the person that processes the application and review process. I am 5 months into an offer o a shortsale that was just assigned a negotiator.. but then again.. I did another that took 4 weeks offer to close.

Take a shot.. If you have a goofy offer.. like 100k under the already reduced list price, then get ready to watch flowers grow. If you are realistic and see a good value and make a reasonable offer.. then maybe it will go faster.

Oh BTW, the bank could care less about your time restriction.

Good Luck.
1 vote Thank Flag Link Thu Aug 6, 2009
Hi Goodie716, Ah, we meet again, Jeannie Feenck here - the words "very slow" do not capture what you may encounter. I've heard of adding a time restriction on the offer, and while help you define the length of time you want to be hanging in limbo, I don't think it will influence the bank.

Depending on where in the process with the bank and the seller you are entering the process will impact the timing. Consider this - I have a short sale in process, my buyer is paying all cash, and it is an offer everyone wants to work - even with a unified front, and great resources all around, we are still slugging our way through.

Good luck,
Jeannie Feenick
"Unwavering Commitment to Service"
Search the MLS at http://www.feenick.com
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Thu Aug 6, 2009
GO AHEAD AND GOOD LUCK TO YOU!
0 votes Thank Flag Link Mon Aug 10, 2009
Hi Goodie716,

We have handled many short sale and REO transactions, and from our experience such a request could work against you or have no effect on your offer. It depends on the other details of your offer and the lending institution that owns the home. Some institutions respond quickly, others take up to 90 days to respond. Their response time is not always due to limited staff. In some cases, no response indicates a rejection of your offer. Lenders do have a strong preference for cash offers. If you let us know, by email or by phone, the relevant details we should be able to give you a better gauge on your offer.

We also work in cooperation with lenders in preparing the homes for short sales and foreclosures. We evaluate the properties and prepare other materials required for short sale and foreclosure procedures. This have given us a crucial inside glimpse into the process and how matters are handled.

Best

Artyom and Natasha
Rogov Team
Re/max Central
Art-(908)216-5066
Natasha-(908)839-5995
rogovteam@gmail.com
0 votes Thank Flag Link Sun Aug 9, 2009
Banks are overwhelmed many times lender does not like offer you will never receive a response.

It can take approx. 60 days close on any property, HOWEVER on some foreclosures we have closed within 10 days cash offers.

Your buyers agent can assist you make those decisions for benefit and timing of your family move.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Aug 7, 2009
Hi Goodie,

What did you decide to do? Do you have two bank properties that you are going to make offers on? Are you working with an expereienced Realtor? Be sure that your Realtor takes the time to do their due diligence to help you make a smart descision. If your realtor is just winging it and not looking at the pertinant information related to the properties, you do not have a chance.

Call or email me with any questions or to help you make an offer on the propery that you are interested in!

John Sacktig
0 votes Thank Flag Link Fri Aug 7, 2009
I have found that a property already owned by the bank will not take too long for contract approval. What might take some time is waiting for the bank to clean up the title.

Laura Giannotta
Keller Williams Atlantic Shore
0 votes Thank Flag Link Fri Aug 7, 2009
Goodie,

While I have not read the responses of the previous posters, my view would be that a "time restriction" would mean little to a bank considering (1) the plethora of buyers looking for "deals" and the number of offers on a property and (2) that banks today are so short staffed that a time restriction is meaningless.

I'm told that offers that get the most attention are those without any contingencies . . . . either home inspection or mortgage . . .. while I personally an unable to concur based on experience, this appears to be the mantra taught by those who are proficient in dealings with short sale or bank owned properties.

Be advised that I am not advocating a purchase of a home without a home inspection, but that you must be willing to shell out the cash (usually b/t $395 to $495) for the inspection prior to making an offer that could feasibly not be accepted.

Hope this helps!

Love and Peace,
Francesca, Realtor, ePro
Francesca@PatrziioRE.com
732.606.2931
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Thu Aug 6, 2009
On a bank owned property the response time is not usually that long, unless there are several offers and the bank takes time to choose their best offer, they agent may also wait to see if a better offer comes in. You need to do your research and place an offer accordingly, the agents for bank owned properties know what the bank is looking for and if you submit an offer within those guidelines you can close quickly, they do not like contingencies at all, a larger deposit up front is recommended, cash funds or mortgage pre-commitments are acceptable, it is better to work with an agent whom has exerience in Bank owned properties. The offfer should not be a low ball offer make your best offer and the Bank knows what the property is worth they have appraisals and BPO (brokers price opinion) on their properties, they know what is wrong and have priced it accordingly, sales as "AS IS" and they mean it, it may not be the best deal always so you need to work with an experienced professional and have an inspection done first so you know what you are getting into. Feel free to e-mail me for further information at mia@villonrealty.com
0 votes Thank Flag Link Thu Aug 6, 2009
Keep in mind that there is a difference between short sales and REOs (forclosed). If time is a factor, stay away from the short sales. Approved short sales & REOs don't usually take as much time. In fact, often a condition on a bank-owned property is that the buyer be ready to close in 30 days. The best thing for you to do is get hold of a good realtor to do all of the leg work for you. If you don't have a realtor, any one of us can provide you with a referral.
0 votes Thank Flag Link Thu Aug 6, 2009
I agree with Jeannie, while it won’t hurt, but it will probably have little impact. The average short sale is taking 4-7 months these days. The buyer, realtor, and sometimes the even attorneys are typically out of the loop and very frustrated. The solution, or the closest thing to it, is a "negotiator" this is an assigned mediator between the bank and everyone else involved. Negotiators are experienced individuals familiar with the paperwork, the rules, and what most banks require to close faster. Banks have very little time for people learning the process. If you waste the bank’s time, your file gets stuck at the bottom of the stack. They want files that are prepared properly first. Attorneys normally assume this role, those experienced and dedicated to short sales do just fine. Some attorneys lack the knowledge of banking terms and requirements or are busy with other cases and/or workload. A negotiator is dedicated to closing short sales and puts relentless pressure on the bank daily. In our office I have seen a 3-6 month reduction in the time is takes to close a short sale since we started using a negotiator. Our negotiator is Maria Forsberg you can reach her at info@njreporters.com
0 votes Thank Flag Link Thu Aug 6, 2009
Well if one is a short sale that takes even longer, which if you get the one you cancel the other..
0 votes Thank Flag Link Thu Aug 6, 2009
This is why I am debating the 2 offers on 2 places. One is bank owned and one is not. I like the bank owned one better but don't want to be stuck in limbo because they don't respond and than lose the other place because of that.
0 votes Thank Flag Link Thu Aug 6, 2009
Putting a time frame on the offer may slow down the process even more, banks want as clean as possible offer...
0 votes Thank Flag Link Thu Aug 6, 2009
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