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.
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 Joel@KandJHomes.com and tell me who the bank is and the listing agent and I'll give you my ideas.
Hope to talk to you soon,
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.
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.
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.
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.