Home Buying in Westwind>Question Details

Fahnel1, Home Buyer in Westwind Plaza, Avon...

If the banks are so anxious to sell homes that have been foreclosed, why does it take so long to respond to an offer?

Asked by Fahnel1, Westwind Plaza, Avondale, AZ Sat Apr 30, 2011

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First of all banks are not anxious to sell homes that have been foreclosed. They often hold them for weeks, months or years. The banks are controlling the inventory levels (supply vs. demand) therefore keeping prices from dropping drastically like they did in 2007 and 2008 when banks would dump a large amount of homes on the market.

Second, the bank is maximizing their profit. If you put an offer in on a property and they don't get back to you for 10 to 15 days it allows other buyers to also get interested in the property so they can issue you a HIGHEST AND BEST OFFER, because they have multiple offers. I have helped dozens of people purchase bank owned properties and have seen this many, many times first hand.

You should be working with a professional full time REALTOR to help guide you through the complex world of purchasing a home in today's market.

FYI, as of the time of this post, it is a SELLER'S MARKET with inventory levels below a 3 month supply putting the SELLER'S in control (this means the potential for a slight increase in prices and multiple offers competing against high demand homes).

I hope this helps.
Web Reference: http://www.DonaldKeys.com
2 votes Thank Flag Link Sat Apr 30, 2011
@David

Banks are not making money on foreclosed houses. They foreclosed because the borrower did not repay the loan. They have written off tens and hundreds of thousands of dollars on each foreclosure. The ideas that a slight increase in the value of the foreclose houses “will make billions of dollars” for the banks is ridiculous.

It takes a while for a bank to respond to an offer on a foreclosure because a bank is a bureaucracy. The offer is handled by clerks after it is received from the listing agent. The clerks bump it up the line until someone with authority finds the time to make a decision. Of course, once the bank makes the decision to accept your offer, you better be ready to skip quickly to their tune.
0 votes Thank Flag Link Sat Apr 30, 2011
Why do you assume that banks are "so anxious to sell homes"? If the selling prices of the homes they own start going up, they will make billions of dollars. It looks like they are sitting on cash, and can borrow at almost zero dollars from the fed. They are really in the drivers seat.

David Cooper. Las Vegas Foreclosure Investor in Bank Owned REOs with Cash Flow. call or email for FREE daily list +1-7024997037 not a real estate agent
0 votes Thank Flag Link Sat Apr 30, 2011
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