We put an offer in on a bank owned home (Reo) and in our contract stated they had 3 days to respond. Is this?

Asked by Sarah, Antioch, CA Tue Feb 5, 2008

enough time for the bank to respond? Will it take longer for them to counter?

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Marston Myers, , Brandon, FL
Tue Feb 5, 2008
I am sorry to be the one to burst your bubble, but the contract you wrote, agonzied and sweated over means very little to the bank. The only thing the 3 days means is that your offer is voidable by YOU after that time frame. When they do respond to your offer (and if they respond) in a few more days to weeks their "acceptance" and counter will be a 15+ page "addendum" that virutually nulifies your contract and inserts the banks terms and conditions. Note that one of the terms will be that the bank (seller) can cancel the contract at any time up until recording of the new deed. Even when you have removed all of your contingencies, completed inspections etc.

I tell all of my short/REO buyers - DO NOT get emotionally involved with the property or the process. Let your Realtor do their job and push all the buttons. When the bank decides to move forward be prepared to jump through hoops for them. You are dealing with non-emotional administrators that have never seen the property and only see your contract as another file on their desk. They follow formulas, protocols and their own timeframes.

This has been my experience and I sincerely hope your deal goes smoothly and timely, but if you expect the worst than you will be pleasantly surprised. Do not expect the Bank to act "rationally".

Now go enjoy the day and wait for your Realtor to call you.
1 vote
Perry Hender…, Agent, Austin, TX
Wed Feb 6, 2008
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.
1 vote
Keeper9112, Home Buyer, Browns Mills, NJ
Sun Aug 12, 2012
it take long are favor of me my offer
0 votes
John and Dia…, Agent, Brentwood, CA
Tue Feb 12, 2008

I hope by this time you have gotten your response. Countrywide has a large number of properties that they have gotten to sell during these time and sometimes the process drags. I am a CW Branch approved broker and I can tell you several things that may be causing you the delay. Remember, it is the listing agent that communicates with the bank, not your agent (unless the agent is also the listing agent).

1) Low offer. If the offer is more than 10% lower than the asking price, most of the time it is rejected, however if the property has been on the market for some time, they may hold it prior to countering your offer.
2) Asset Manager's workload - each of the asset managers at CW is responsible for over 250 properties. Normally a 2-3 delay is expected but there are exceptions
3) The relationship of the agent to the asset manager - Many agents have just been assigned as REO brokers. If they do not have a history with the asset manager, sometimes there is a delay. If they have a negative relationship with the asset manager, there will be delays, guaranteed. They are people after all.
4) CW is changing over to a new platform - the additional workload is delaying response.

Hopefully, this information is not needed and you have your answer by now.

In our area, REO responses are usually coming back in 2-3 days, sometimes sooner, despite what our friend from Austin TX says. Each market is different Short sale offer are not being responded to for 3 weeks to 3 months, hence most agents in our area are not showing short sales.

The banks do not want these properties and they do want to sell them. Good luck in your purchase.
0 votes
LS, Home Buyer, Dallas, TX
Wed Feb 6, 2008
Sarah, I'm a potential buyer- I placed an offer on a foreclosure on 01/23/08 and was asked to sign a "Multiple Offer Acknowledgment" on 01/25/08- I still haven't gotten a response from the bank. The listing agent said it typically takes them 24 hrs-1week to respond........obviously we are past that point.......and we are STILL waiting. So, pretty much all you can do is wait, or back out. Your realtor can continue following up with the L.A. but that still doesn't necessarily speed up the process. Good luck to you Sarah
0 votes
David, , 94509
Wed Feb 6, 2008
I have a question i put an offer on a Reo Countrywide home, i am already preapprove with countrywide they were asking 459,000 and i send a offer for 430,000 and me paying for closing cost, the listing agent send the offer on 4/4/08 at 2pm my time 4pm countrywide time (eastcost) have not hear anything back, do you think if they did not like my offer they would had told the listing agent by now. my is the only offer right now.
0 votes
Brooke 'The…, Agent, Camp Hill, PA
Tue Feb 5, 2008
Hi Sarah - As an experienced Realtor in Shorts/REO's etc I can tell you that the bank cares little about your 'terms' to respond...they are more interested in THEIR terms to respond...
You will have to wait until they get back to you...Try to be patient! Hope that helps...
0 votes
David, , 94509
Tue Feb 5, 2008
We put an offer on a Reo home the bank is Countrywide my agent is good friend with the listing agent, is it easier to be a faster responce from the bank if my agent knows the listing agent?
0 votes
David, , 94509
Tue Feb 5, 2008
I have a question is it true that if a offer has been submitted to a bank for a Reo property, that whatever come after that they dont look at does offer until they are done with your, meaning if they dont take your offer they mover to the second offer.
0 votes
Johnny Huang,…, Agent, Walnut Creek, CA
Tue Feb 5, 2008
Banks are inundated with workloads they've never see before, therefore reviewing contracts on their REOs and/or Short Sale may take longer than expected. They may also are going to look at "other" offers, therefore my drag out your offer. Not knowing what you offered, the banks are simply looking for the best bottom line.

Have your agent call the bank on the 3rd day and see if the bank can respond with a counter if you don't hear from them. Make sure your contract states that the buyer has the first right of refusal after the contract is accepted if you are making other property offers. Please seek proper legal counsel for any contractual set up and wording.
0 votes
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