Foreclosure in Levittown>Question Details

Erin, Other/Just Looking in Levittown, PA

What length of time is acceptable for a lender to decide to accept an offer on a foreclosure?

Asked by Erin, Levittown, PA Sun Jan 20, 2008

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That's a great question. Unfortunately for everyone involved in s short sale or foreclosure, the abnk has no time limit, even if a buyer writes on in a contract. The banks will do what ever they want when ever they want!

The best scenario for a buyer is to have somene else's deal fall through where the bank has already approved. Many times the bank will approve a deal that is not name specific. I have a buyer who wrote on an approved short sale that had gone south and we had it wrapped up in 48 hours.
0 votes Thank Flag Link Wed Oct 13, 2010

TH\here is no acceptable time for a lender. I really all comes down to the specific bank ane who has listed the property. If you would like, email me at and tell me who the bank is and the listing agent and I'll give you my ideas.

Hope to talk to you soon,

Web Reference:
0 votes Thank Flag Link Wed Oct 13, 2010
It has been my experience, as an exclusive buyers agent, that not all offers are submitted with all the attatched documents. Reason: The listing agent has a lower offer but will double, yes double, his or her commission if they forget some or all of the offer. This is the real world. Agents are not allowed to contact the seller (bank if forclosed) to check.
Solution; some banks require that the offers are presented by the selling agent on their web site. Smart! Many do not.
The buyer(s) may call loss mitigation dept to make sure the offer is presented. Put notification in offer. I.E. "Should this offer not result in a contract, Buyer(s) shall check with bank to verify receipt."
If the bank finds out offers are not submitted by their listing agent, the agent will lose all listings.
It is a shame a very few ruin it for all.
0 votes Thank Flag Link Thu Oct 7, 2010
FORECLOSURE REALITY CHECK.... Seasoned investors who buy foreclosures know the REO manager at the bank and get "off market" deals. They never have to bid or find a place to learn what's available.

FOR ALL OTHERS: The only "sellers market" in america is the foreclosure market. Don't expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market. For government foreclosed homes, by law, they have to be priced "at market".

The REO manager has a short list of "cash/close in 2 day buyers", they always get the first right to bid. Then they have to wait for the "public auction" Which drives up those prices. After a 30-60 day period. Then the REO picks the best bid. Sometimes, only sometimes does a REO manager take a property directly to a buyer he knows peronsally. Why should he, he has a bunch of people bidding and driving up the prices.

My REO manager friend likes to joke about all the "first timers" who continue to drive up the bid when they don't hear anything from the bank. Every time I see the "how come I haven't heard from the bank about accepting my foreclosure bid after 30+ days" on trulia, I have to let out a chuckle because he's so right. For those newbies, this is real. They know that when you don't hear from them that a large percentage of people drop a second or third offer higher than the previous one. **WARNING, YOU ARE BEING TAKEN ADVANTAGE OF HERE**

You want a deal on a property right, everyone wants that.... So the moral of this story is:
1. the 60 days you have to wait to hear from a REO, you could have made 2 or 3 better deals with a property that has been on the market for a long period of time. Any realtor can help you drop a crazy offer.
2. You are attempting to make a deal in a house covered in a cloud of bad energy, don't be surprised when it rubs off. Personally I stay away from these for this reason entirely.
3. One way to get a deal is dropping a hand written note on ANY house in a neighborhood you want to buy that says "my girlfriend and I want to buy a house in this neighborhood and yours looks cute from the outside. Do you know anyone that is looking to sell?" I always get responses, better prices and positive energy into the home.
0 votes Thank Flag Link Sun Jan 20, 2008
Yes, the listing agent for a specific property will be best able to tell you.

The flip side of coin is that even though the banks are unpredictable on when they might tell you, once they decided, they might demand that you close asap. I guess these and some other drawbacks are the price a buyer pays when they want to get what is 'perceived' a good deal.

0 votes Thank Flag Link Sun Jan 20, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
I agree with Pam’s response! They seem to be coming back faster with an answer then a year ago……….however each bank is different. This is the most frustrating thing about buying REO’s. They seem to have their own set of rules. I have done so many now, I know what to expect and can prepare my client for the buying experience
0 votes Thank Flag Link Sun Jan 20, 2008

I am guessing you are referring to an REO, a bank owned property due to foreclosure. If owned by the bank the time frame can vary. I have seen them accepted within 3 days and maybe from 7 - 10 days. It really varies from lender to lender. I would have my Realtors find out from the listing agent what the time expectancy is. Good luck.
0 votes Thank Flag Link Sun Jan 20, 2008
Pam Winterba…, Real Estate Pro in Danville, VA
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