Foreclosure in Dearborn>Question Details

Rose, Home Buyer in 48126

How long does it take for a bank to accept an offer on a foreclosed home? and can they hold out for a better

Asked by Rose, 48126 Wed Nov 19, 2008

offer then what their asking for?

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Hello Rose - Nice name (smiles)

I have handled many foreclosed sales over the past several years. I can tell you from experience that each asset manager (this is the indivdual who represents the bank) is different. Some will take 2 to 3 days like Bill mentioned however I have waited as long as 2 weeks before I knew I had the deal.

Unfortunately this is a price you pay when dealing with this type of a transaction. The key is, the buyers agent who represents you must have all documentation in order. This will help expedite the procedure. As long as a contract has not been accepted they can consider as many offers that come in. Matter of fact that is the goal, not only to sale the house but also to create a bidding war.

If the house just comes on the market, in most cases, they will not negotiate much... not always but most cases. It is after it sits a couple of months that they are more eager to work a deal.

If you put a deadline on the contract and you really want the home, you'll just be hurting yourself.

Remember they are at a loss, and ultimately you will get a discount... however with this type of transaction you need patience.

Rose, if you are not already working with an agent, feel free to contact me via my website. [ ] Have a great day and good luck.

Rose Simms
Keller Williams Realty
Servicing Southeastern Michigan
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3 votes Thank Flag Link Wed Nov 19, 2008
if you are buying in dearborn, reconsider!!! they are crooks and liars. its evident by a building and safety department employee being found guilty of accepting bribes. but i knew this long before this conviction took place. If you are looking to get a certificate of occupancy, good luck!
they actually created a new department, closed the old building and safety office upstairs(its now some sort of fire department) and gave all these crooks new jobs with new titles.
do not buy in dearborn!!! especially with rehab or foreclosed houses. they hold you to a different and unfair standard of doing repairs. i have first hand experience with them. they did a blanket inspection and passed it off as real, when i dont believe an inspector stepped foot in the house. they stated in the inspection report certain things needed to be repaired when in fact they didnt. the plumbing was determined to be changed, when in fact the water had been turned off pre-inspection, figure that one out??? i asked the inspector how he concluded the plumbing needed replacing, his reply was i have 20 years experience. when i had the water turned on, the water never leaked.

im telling you people this is not propaganda, only the truth as i have experienced. they will make your life a nightmare it will cost you a fortune to live in a city that is way past its prime.
1 vote Thank Flag Link Mon Jul 20, 2009
Rose, I feel your pain my husband and I put a bid on a house going on two weeks now and the listing agent quoted my realtor 5-7 business day to get an answer and when we called them a week later they said they still dont have an answer but to keep checking back on them. I was worried they were holding out on a better offer as well.
1 vote Thank Flag Link Thu Feb 5, 2009
my daughter and her husband were in a bidding war with another person for a foreclosure, they were told by the listing agent that highest and best offer needed to be in by Friday at noon. They sent it in and their bid was higher so they won the bid, the papers were sent to the bank that day. On Saturday someone else came by the house without the listing broker, in fact without a broker at all, and without even going into the house to our knowledge, called the bank directly and offered asking price and got the house. That does not seem fair since the offers needed to be in by Friday noon and this person wasn't even involved with the original bidding. Shouldn't the bank have offered my daughter and husband the option to bid again if they chose to? There seems to be a lack of integrity amongst these people involved. And it seems that it was a stall tactic to let the house be seen for the weekend in case a better offer came in before Monday. That just is not right!
0 votes Thank Flag Link Tue Jan 27, 2015
From my experience it really depends on the bank and the situation, It is getting a little better and most times they will get back to you in a couple of days. But I don't think this question has an exact answer.
0 votes Thank Flag Link Mon Jan 23, 2012
they are asking 73000.00 but the property has 20000.00 in code enforcement fines so i said i'll offer 50000.00 and pay the fines.
0 votes Thank Flag Link Thu Jul 16, 2009
A short sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property.[1] In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's Loss mitigation department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Most Short Sales leave a deficiency balance for which the Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full. A deficiency balance will remain while the mortgage broker, real estate agent / broker, loan officers, title and closing agents retain their profit. No regulatory agency governs this hybrid transaction.

Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation.

A short sale typically is executed to prevent a home foreclosure. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults
0 votes Thank Flag Link Fri Jan 2, 2009
Most banks answer the offers within 24 hours, it is actually rare now to have to wait longer. most of the banks i list properties for get back to me same day. If there is more than one offer they usually come back and ask for the highest and best offer. Usually when a bank accepts an offer they send a purchase addendum that outlines the price and terms of the sale, but it does state not to consider it final until signed by the bank which usually can take 1-3 days. Some banks do insist the listing brokers submit any higher offers during these 1-3 days and yes if a higher offer comes in they can accept the secondd or come back to you and ask you if you want to go up. nothing is final until the bank signs it and theagent receives it. When buying bank owned homes you really should have a buyer agent that can assist you, guide you and look out for your best interests. in most cases it does not cost you anything out of pocket as they get paid through the listing agent the fee offered in MLS and paid at closing. good luck with your purchase
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0 votes Thank Flag Link Wed Nov 19, 2008
The answer depends on the foreclosing bank, the timeline in the process and if the property is not truly an REO (gone through the redemption period) there can be a very long time between when an offer is submitted and bank acceptance. For the REO's (once the first lien position/bank has the property officially back) the process is quicker. If the property was just foreclosed (sheriff sale) and is in redemption, the delay depends on how many other interests (lienholders) are involved. My record time to get an acceptance prior to a sheriff sale (foreclosure) was 30 days for a single lien; during redemption you can expect about 60-90 days depending on the bank and after redemption, possibly as quick as 2-3 days.
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0 votes Thank Flag Link Wed Nov 19, 2008
Hello Rose. I am an agent who has dealt directly with the banks and has submitted offers for buyer with other companies. I can tell you that the banks I dealt with directly would give us an answer within 24 hours Monday through Friday, sometimes faster than that. I have also had cases when representing buyers who wished to purchase from other Brokers, they have had to wait as long as 1 - 4 weeks. If you have an agent representing you, I am sure they have told you that until the time you get the banks signature back on your offer, they will continue to look at any and all offers they receive.
If you are not working with an agent at this time, I would be willing to answer any of your questions directly. You may contact me at 248 567 3895. Thank you, John
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0 votes Thank Flag Link Wed Nov 19, 2008
Hi Rose!
Usually the bank buys back the foreclosure AFTER the upset period of 10 days, thru the clerk of courts has expired. At that point you can contact the bank, or have a realtor do it for you, to find out if they will accept offers, or if they are going to relist the property. Speak to someone in the REO department.

Hope that helps??
Suzanne Whealan
0 votes Thank Flag Link Wed Nov 19, 2008

It shouldn't take longer than 2-4 days on a foreclosure for the bank to get back to you. Secondly, it is very possible a bank could be entertaining multiple offers on a property.

Your agent should be pushing for a signed agreement ASAP to minimize the chance of additional interests entering the picture. A fair offer on the buyers part can initiate a quicker and more serious bank response.

Good luck
0 votes Thank Flag Link Wed Nov 19, 2008
Rose, welcome to the world of bank owned properties. I hope you are working with a Buyers Agent with plenty of experience selling bank owned properties who can walk you this process. She short answer to your question is yes. The longer version is that if they do not like your offer at all they may never answer it. If they want to start negotiations you will receive a counter offer but this can take from a day to a week. If they know another offer is coming or if they have received another offer you will usually get a multiple offer addendum to sign and be given the chance to submit your highest and best offer. Where are you at in this process?
0 votes Thank Flag Link Wed Nov 19, 2008
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