Appraisal came in lower than accepted offer on GoHoming.com. How long does a bank usually take to review a price change addendum for an REO sale?

Asked by Jdm, 48327 Mon May 28, 2012

I am buying an REO home through the GoHoming.com website. The seller accepted our offer of $147,000 with $2,000 contingencies on 3/16/12. The appraisal came in at $140,000 and we sent a price change addendum for $140,000 to the seller by mid April. The contract had time limits in it that we needed to meet, so we have extended the closing date in the contract 4 times already. I am glad that there is someone on the other end signing the contract extension addendums, but how long does a take take to review a price change addendum? They have had it for over a month now. I believe that the actual seller is Ocwen.

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Mike Stawizky’s answer
Mike Stawizky, , 48382
Mon May 28, 2012
Hello Jdm,
Yes it depends on the bank, work load of the processors and you'll find out what else. It could be a month, it could be next week. Sit tight though since it most likely will be worth it.


Best Regards,
Mike Stawizky
(248) 980-4406
Keller Williams Realty
Find your home: moveinnow.org
Or visit us on Trulia.com
0 votes
Pam Bava, Agent, Rochester, MI
Mon May 28, 2012
My question is are you working with a Realtor to help you through this transaction or is this something you are doing on your own by just submitting a bid on the GoHoming web site. I don't think Ocwen is the seller. I would make sure you read through all the contracts throughly if you are doing this on your own. The property is marked Pending in the MLS realtors use so they should not take any additional offers. On the Go Homing website they will take other offers and will consider them if your deal falls through. Like a back up offer.

Good luck with this property
0 votes
Hi Pamela and thank you for the advice - We do have a Realtor. The contract is contingent on financing, so worst case is that they do not accept the lower price and we decide to walk away. The seller is signing contract extension addendums, so I know that there is someone on the other end. The reason we need these extension addendums is because their contract has a $300 plus $100 per diem fee if the date goes beyond the contract date.
Flag Mon May 28, 2012
Tim Moore, Agent, Kitty Hawk, NC
Mon May 28, 2012
Haig must have missed the part about you saying it was a REO since he mentions foreclosure and short sales which a REO is neither. Since it is REO the bank owns it and they can decide to do whatever they want. I have seen REO's get price reductions quickly and slowly, remember they work Mon-Fri and not on holidays. They probably have requested another BPO to be done to help verify the appraisal done by your lender which takes a couple weeks. To think they have not decided by now, having had the request since April, would cause me concern. It sounds like they are trying to see if they can get more offers. Putting time limits on offers to a bank is futile and can piss them off as they ignore them.
0 votes
Haig Istambo…, Agent, Rochester, MI
Mon May 28, 2012
Hello,

The first thing I tell my clients about Foreclosures or Short Sales, is don't expect quick answers all the time, every bank moves at a different speed.

I had one price adjustment take 2 days and a recent one take 2 months, so there really isn't a set timeline, the bank decides when they will get to it. As far as putting deadlines down for banks to meet, I found that was a waste of time, because the bank usually will not meet those deadlines. Your file get's in "line" with all of the other files that are all ready on that person's desk and they will eventually get to it. To you it's "your home" and to them it's "just another file".

From your end I know it is frustrating, but there really isn't much you can do, just be patient and wait it out. Luckily you have the extensions being signed and that is a plus for now. Your agent should be able to get a few answers for you, from the Listing Agent. The Listing Agent is usually the one that has the connection with the Bank and gets answers.

Hang in there, eventually this will all be behind you and you will have your home, just keep telling yourself, it is worth the wait.

Let me know if you need anything else.

Thank you,

HAIG
Elias Realty
(248) 379-6547
realtorhaig@aol.com
0 votes
Thank you for the quick reply Haig.

The listing agent for this home has a "limited service agreement" so they aren't much help.

Isn't the bank losing a significant amount of money by not closing on the property soon? I heard that it could be as high as $5,000 per month in lost principal, taxes, etc... This alone makes me think that they would want to close and have it off their books. It seems hard to believe that they are so busy that it takes 2 months to review a file, but hopefully in the end it is our gain!

Thanks again!
Flag Mon May 28, 2012
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