Home Buying in 90808>Question Details

Alex, Home Buyer in Los Angeles County, CA

I'm going to make an offer on a bank-owned house. How long do banks typically take to respond?

Asked by Alex, Los Angeles County, CA Sun Aug 24, 2008

(The title is held by IndyMac Bank)

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Answers

17
So this question was asked a long time ago. Nowadays Bank Owned properties make up such a small percentage of the available homes for sale on the MLS. The few that make it usually have multiple offers and they can take up to a week to respond. I guess it depends on the offers as well. If the offers that are submitted are too low, the bank will just sit on it a while to see if anything else comes in.

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic#01456982
0 votes Thank Flag Link Tue May 12, 2015
Alex,
several years ago it would take them a while, but now they typically answer within a week or less for an REO. If it is a short sale, that can take a number of month.
-Vlad
0 votes Thank Flag Link Sat Jul 20, 2013
It depends on the bank, but actually it is pretty quick. My experience is that we hear in 2-3 days if the offer has been accepted or rejected or countered by the bank.
0 votes Thank Flag Link Thu Aug 2, 2012
Alex,

When writting an offer on a bank owned home beware they do not respond as fast as regular sales sellers.

The listing agent will sometimes specify in the agent remarks on the MLS how long the response time is likely to be.

I have had cases where they respond quickly, other times the will take several days, or even a week or two.

Kawain Payne, Realtor
0 votes Thank Flag Link Thu Aug 2, 2012
Hi Alex,

It totally depends on the Bank and how quickly the Realtor representing the Bank submits your offer. Usually, I will call the listing agent and ask them what their response time is to an offer. If you need help submitting an offer, feel free to contact me directly at annamaria@southbayluxuryhomes,com. I specialize in assisting Buyers purchase Bank -Owned Properties.

Thanks,
Anna Maria Kitras,Broker Associate- Keller Williams
http://www.southbayluxuryhomes.com
323-608-4881
0 votes Thank Flag Link Wed Jul 25, 2012
The amount of time it takes for a bank to respond to an offer can vary. Sometimes a bank will choose the highets and best offer, and not bother even countering any other offers. some banks may counter all offers received in a certain time frame. bottom line it varies!

Best of luck to you!

Kawain Payne, Realtor
0 votes Thank Flag Link Sat Jun 2, 2012
This post is over 2 years old:-(
0 votes Thank Flag Link Sun Mar 6, 2011
It depends. Most likely within a week.
0 votes Thank Flag Link Sun Mar 6, 2011
It depends. Some banks will give you 24-48 hours; some will give you a week. Ask the listing agent.

Charita King
562-276-8681
0 votes Thank Flag Link Thu Oct 2, 2008
The key to putting in an offer that will be answered in a timely manner is first to have no contingincies, include a prequalification letter, make sure you do your inspection prior to putting ina bid as it is sold as is and you will not be able to renegotiate after. make sure your deposit is in the fom of a certified check and at least 1% of the sales price, the higher your deposit the better your offer looks. Be ready to close with in 30 days of acceptance. With these tips you will be ahead of the crowd. Good luck with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Sep 4, 2008
Alex,

We strongly recommend doing this with the support of a real estate professional that can expadite the process for you. There are many ways that these transactions can fall apart. With the support of a professional you will increase your chances of getting the home greatly.

Good luck,

The "Eckler Team"
0 votes Thank Flag Link Thu Sep 4, 2008
Bank owned homes are tricky getting offers accepted because they usually have multiple offers. There are a few tips and tricks on posturing and structuring your offer to make the bank take notice. I can explain them to you in detail at another time. Be advised banks are averaging 95% of their asking price and they require a certain amount of paperwork to be submitted with your offer. If you don't follow directions, your offer will go in the round file. You can click here to learn more: http://www.socaloceanviews.com/professional1.shtml.
0 votes Thank Flag Link Wed Sep 3, 2008
i put an offer on an REO over a month ago. At first there were just 3 offers and I heard ours was pretty good. Then there were 5 offers but only 2 (including ours) would be donsidered....Then the listing agent said the bank was looking at termite reports and would get back to us the next day...that was two weeks ago. Since, I learned there are 15 offers and the listing agent was going to sit down and go through the offers on thursday, apparently ours was still near the top...

It's now monday, I'll assume there are 50 offers and no one knows what's going on. the house is sitting for 80 days now... The next time I hear someone complain "why aren't buyers buying"...TO THE MOON! ;)
0 votes Thank Flag Link Mon Aug 25, 2008
Yes...Definitely make sure you offer makes sense. In our case as I noted below it took Indymac 4 weeks to sign our offer. We offered 5,000 over asking price and Indymac still took a month to get back to us...I couldnt even imagine asking under the price..Who knows how long it would have taken. I would keep looking while your offer is in at Indymac. That way you will have back-up houses should this fall through. I do think this delay was specific to Indymac as they are having lots of internal problems with job turnover...At least that is what the Indymac asset manager told us...He gave us that reason for taking so long.
0 votes Thank Flag Link Mon Aug 25, 2008
I would also entertain strongly looking for other properties. I am a state licensed appraiser also and what I see is a continuing slide in values down which the lenders are trying to avoid by delaying accepting offers that are low. The lenders are the ones that created this mess, so as a buyer don't jump back in and get duped. Make sure your offer makes sense by working with somone who really understands the current market. Conatct me and I can let you know what I see the property is worth. But shop around...., be ready to move on...,.


David Krecker, BSBA, SRA, MRA
Centuryside Real Estate Inc.
David Krecker
Broker/Owner/State License Appraiser
Office 562-690-6987
Fax: 562-690-7337
Serving the areas of Orange County, Los Angeles County, San Bernardino, and Riverside.

Email: dave@centuryside.com
Website: http://www.centuryside.com
Web Reference: http://www.centuryside.com
0 votes Thank Flag Link Mon Aug 25, 2008
Alex
Normally an REO sale will proceed more quickly than a short sale. The response time is going to vary from lender to lender. The listing agent's relationship with the lender will make a big difference, so is the manager that has been assigned the file. I have heard good and bad reports about most lenders. Be patient, be flexible, have your ducks in a row.
0 votes Thank Flag Link Mon Aug 25, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
We made an offer on an Indymac owned home and they verbally accpepted within 48 hours. BUT it took 4 weeks to get the official offer of acceptance signed and delivered...A verbal really means nothing and escrow could not be opened until Indymac signed the agreement. We had everything needed too...Meaning we had our pre-approval packet etc...all included...It was a long drawn out process...Indymac kept telling us that the asset manager had signed it...But that they needed 1 more signature...and that signature took 4 weeks to get....We are in Southern Calif...I dont know if that made a difference or not...Hopefully your offer comes back quicker then ours did.
0 votes Thank Flag Link Sun Aug 24, 2008
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