Home Buying in 28465>Question Details

Charlie, Home Buyer in 28465

What is a reasonable amount of time to expect a bank to respond to a bid on a short sale?

Asked by Charlie, 28465 Sun Aug 28, 2011

We placed a bid over 1 month ago and the bank hasn't responded yet. In the mean time houses within my budget are quickly disappearing. How long should I wait before I pull the offer?

Help the community by answering this question:


This is a common issue in short sales, and probably one of the largest complaints.

Your agent (if you're using one) should have forewarned you that it can takes months (plural) before receiving a response from the bank. The quickest response I've received on an offer for short sale was 6 weeks, and that was very fast.

You could be waiting 2, 3... 6 months, and perhaps longer... and at the end of your wait, the answer could still be "no". They might counter your offer, or simply say no.
1 vote Thank Flag Link Mon Aug 29, 2011
Alan May, Real Estate Pro in Evanston, IL
It depends on how bad you want that house. I would continue to look, and if you see something better, at that point I would pull the offer if you plan to make an offer on another house. I have waited as long as 8 months on a response from the bank on a short sale offer and only then to find out it had gone into foreclosure. I say continue to look at other homes. Your best bet would be to find a foreclosure not a short sale. Good luck!
1 vote Thank Flag Link Mon Aug 29, 2011
This is a common problem.. Much of the time is absorbed by the lender reviewing the financial position of the seller. If the seller has just started the process, then you could likely see a 60-day wait period. The seller's agent should be able to tell you how far into the process the Seller is with approval from the lender.

Another component is knowing how many lenders are involved with approving the short sale. Often sellers have more than one loan, so each lender involved must approve. Another component is the insurance company who may have insured the loan. This can create a huge delay.

The lender requires the Seller to continue making their monthly mortgage payment. And, for example, if the short sale offer is $150k and the loan balance is $180k, then the lender(s) has to forgive the $30k or ask the seller to pay the difference. Likely if the seller had an extra $30k, they would not be in a short sale position. The short sale can only be approved by the lender if the Seller can prove to the lender he/she has had a substantial change in their financial status..... Sometimes the Seller runs out of time themselves, and decides to stop making the payments....foreclosure takes place and in the end, the bank usually sells the home for less than if they had accepted the short sale.....I could go on and on about this process....

I hope this helps....

Neva Cardwell, Broker
Coldwell Banker Sea Coast Realty
1 vote Thank Flag Link Sun Aug 28, 2011
Recently I have had answers back in 7 to 10 business days.
0 votes Thank Flag Link Fri Jul 26, 2013
Just to clear things up we put in a full offer bid which was a reasonable price for the home. 6 weeks with no answer and we pulled the offer when our agent called the seller's agent and we overheard the seller's agent say we were small fish and he had more important clients to deal with. The home wound up selling months later for the very same price we had offered. Thanks to all who answered. I feel there are a lot of buyers this will help. Charlie
0 votes Thank Flag Link Fri Jul 26, 2013
Depending on the bank, usually 30 to 60 days you should know if they are interested in your offer. Some local banks that do not use a company to screen offers can let you know in two to three weeks.
0 votes Thank Flag Link Sat Mar 16, 2013

The other factor may be the bank / mortgage company did not like your bid, so they are waiting for a higher bid. This is very common if you have not heard back from the bank.

Banks normal do not tell you if your bid was unsucessfull, but will tell you if they accepted your bid.

Another option is the Bank may own the property, but may use a third party like Equator or Marshall & Hudson, or one of the other 3rd party vendors programs too sell the property.

Call your agent too see what they did and when?

Good Luck

Tom Bohlmann
Allen Tate Realty
0 votes Thank Flag Link Fri Sep 2, 2011

Although I have responded already, I have to chime in one more time. Much is going to depend on the relationship that the listing agent has with the bank (lien holder). Some banks will allow you to start the process prior to obtaining an offer, but most do not. The key is, as Tom Bohlman stated, that the agent is submitting the correct documentation in the order that the bank requires. Too much, too little? Could be a problem.

If you are not currently working with an agent and you decide to offer on a short sale in the future, get connected with an agent that understands the short sale process and knows what questions to ask the listing agent to make sure that you have two agents that are on top of things and know the details of getting to a successful short sale closing.
0 votes Thank Flag Link Wed Aug 31, 2011
25 to 35 days for a responce. IF your agaent sent all the right documants to the bank and called to makes sure they recieved those documents
0 votes Thank Flag Link Wed Aug 31, 2011
It can certainly be a frustrating process. You can withdraw your offer any time prior to acceptance but you are the only one who can answer the question about how long you should wait. I'm not surprised that you have no response after 30 days. Do you know if the loan is backed by Fannie Mae or Freddie? They have some time expectations placed on them by regulation. I would certainly wait a minimum of 45 days if I wanted the property, and maybe longer. Good luck! Margaret Rudd Bishop
0 votes Thank Flag Link Sun Aug 28, 2011
I can authoritatively tell you that you should never have placed that Offer:

You do have what it takes to be a Short Sale Buyer.

A month is nothing in the Short Sale market; it may be 6 to 12 more months before you get an answer, and then it may be a rejection. Heck, it'll probably be a rejection!
Only about 10% of the SS have been going through.
Obama promises that that number is going to increase, but I don't see how.

Good luck and may God bless
0 votes Thank Flag Link Sun Aug 28, 2011
If you see homes that fit your budget and are what you are looking for in a home, then why would you continue to wait for a short sale that may take months before it is accepted and closed.

My clients have waited for over 2 months and they know as much today as they did two months ago, but they are in no hurry and want this home in particular, so the amount of time to them is not important.
0 votes Thank Flag Link Sun Aug 28, 2011
Charlie teh seller still wons the property in a short sale and should accept, counter or decline your offer right away. The listing agent than submits your offer with the short sale package to the bank for approval, on average it is 3 months, the best ones can be 6-8 weeks but the worst ones 3-6 months. It is important for your buyers agent to have constant communication with the listing ganet and directly with the perosn hired to negotiate with the bank for the seller. they should be able to tell you what step in the process they are at. If you need a quick answer or a quick sale, short sales may not be for you.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Aug 28, 2011
The answer lies in the purchase contract that you signed. Do you have a binding acceptance date? Are you working with an agent?

One month is not an unusual amount of time to pass when dealing with a short sale.
0 votes Thank Flag Link Sun Aug 28, 2011
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