Question Details

Darin, Other/Just Looking in No. Cal

Why are the banks ignoring our offer?

Asked by Darin, No. Cal Thu Jun 19, 2008

We turned in an offer at the listing price months ago. We're about withdraw the offer an re-submit a lower offer.

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Answers

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When dealing with banks in this market - you've got to be in a position to be very patient with them. Some of the banks are equipped to deal with short sales and foreclosures - others are not or are overwhelmed with the volume that they are having to deal with. I advice my clients to be very patient with the process because that is the way that you can secure a property at a great or discounted price in this market. Banks can take several days - 60 days to respond to your offer and any others that they may have collected since posting the listing.

Banks often will allow a pile of offers to collect and then review them to get the best possible offer.

Sit as patiently as you can.
If you are buying the property to live in it - you need to have the flexibility in your current living situation to wait it out.. .if you are an investor - this is one of the pieces to the puzzle...

Some of the banks outgoing messages for their loss mitigation departments actually tell you NOT to leave messages requesting an update because it will slow their process of actually getting the files through the process... if you have someone that you can talk to - ask them if they have a sense of when they might consider responding on the file... otherwise don't give up for 60 days... just make sure tat you have confirmation that they have your contract package and that it is complete [some of the loss mitigation departments are VERY particular about what makes a complete file - and won't even consider an offer it all of the pieces are not accounted for.

Best of luck,

Let me know if you have any additional questions that I can help you with.

Sam Powell
sam@askforsam.com
2 votes Thank Flag Link Thu Jun 19, 2008
There is no right or wrong answer here really. It's a calculated risk on your part. Meaning - if there are other offers on the table along with yours, and they are offering a higher offer, or a cash offer, or just a stronger offer in general - than you are risking putting your offer lower in the pile for consideration. If you know that you are the only offer on the table for consideration - you can pull it and resubmit it to get additional attention to the file. They may not even realize that it is a new offer - so be sure to submit a fax or other documentation officially rescinding your previous offer to them.

You have nothing at risk at this point - no earnest money on the table?
If they chose to accept your offer - you would still have an opportunity in the attorney review to back out of the deal should you not be able to capture it for what is agreeable to you at that point in time.

I'd see if you can get additional information from the bank about whether there are other offers in consideration before making a decision on what your next step might want to be... If you don't like what you hear, or don't believe it to be true - go with your gut and do what you feel most comfortable doing... that's the best advice.

It's a risk either way - you may not be high enough to capture the property to satisfy the lender, or you may be paying more than you could get away with paying should the bank be willing or have been willing to take less... you just have no way of knowing...

If you know what the mortgage is on the property at this time - 80% of that price is a good offer for consideration... worth the effort if the bank accepts.
1 vote Thank Flag Link Thu Jun 19, 2008
My pleasure! Feel free to reach out anytime.
Sam@askforsam.com
0 votes Thank Flag Link Thu Jun 19, 2008
Thanks Sam..your are very gracious...I will take your advice.

D
0 votes Thank Flag Link Thu Jun 19, 2008
Thanks...is withdrawing the offer an subitting a lower one advisable. I don't know if I'm in love with my offer anymore. :)
0 votes Thank Flag Link Thu Jun 19, 2008
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