How long does it typically take from contract 2 closing on property listed as REO/bank owned, 3rd party approval required or other such contingencies?

Asked by Nytodc, Washington, DC Wed Oct 21, 2009

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Arthur Hardy, Agent, Beltsville, MD
Thu Oct 22, 2009
Depends on the bank and on the buyer. We have a team dedicated to short sales but it still takes a few months or more to get them done. Some bank owned homes can close sooner but it is in your best interest to hope for the best and be prepared to have to wait to get it done. Some of these homes have value but you may be missing some homes that are not REO or short sale that have great value and you can close on them in 30 days and not have this kind of concern in getting the transaction done.

Arthur Hardy, Realtor
W.C. & A.N. Miller Realtors
4910 Massachusetts Ave NW
Suite 119
Washington DC 20016
(202) 362-1300 office
(202) 362-3164 fax
(202) 895-2860 direct

Know of anyone thinking of buying or selling a home? Referrals are greatly appreciated.
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Kelly Putz, Agent, Fairfax, VA
Wed Oct 21, 2009
Hey there,

On bank owned properties (Foreclosures) I am seeing the banks want to get them off their books quickly, so they are operating more like a normal sale and can close anywhere from 2 weeks (if you have a GOOD settlement company) to 30-45 days, which is more normal. I recently helped a client buy a property for $200,000 under original asking price after only being on the market for 3 months. ALSO, even though this was an as-is sale, the bank paid to install a new water line, repaired the boiler and patched a hole in the kitchen ceiling to make the deal work. All things banks historically wouldn't fork over any money for.

On 3rd party approvals (Short Sales) you are rolling the dice, unless they have a dedicated and experienced person handling the deal on the seller's side. These can take 2 months, if you're lucky, or as long as a year. If they do have the dedicated person, it could go more like a normal sale. Also, keep in mind that if you have a signed contract with the OWNER, you have a ratified contract - meaning that both you and the seller have signed all documents. The bank does not really have anything to do with the selling of the house, other than OKing the seller to sell it for less than what they owe, ie: Short Sell it.

If you get a ratified contract and they try to back out of it because they didn't get their bank approval first, you can legally force them to sell the house to you, but have your Realtor® and an attorney check the contract before taking this step.

Hope this has helped!

Kelly Putz
Kangal Real Estate
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Saab Realtors, , Vienna, VA
Wed Oct 21, 2009
I had a Bank owned property close in 2 weeks.
Typically they take 30 to 60 days.
short sales is a lottery, 45 days to 14 months.
Ramesh Chandra
703 635 8209
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Harry R Brub…, Agent, ALEXANDRIA, VA
Wed Oct 21, 2009
Hello Nytodc,

Be prepared to practice your 'patience' abilities. They can close in as little as 30 days if the listing agent has prepared properly.....or as long as 6 months (my longest). This case os for both short sales and REO properties.

Best, Harry

Our service is 'before', 'during' and 'after'......We want to be your families and your friends, 'trusted real estate advisor' for life! If you know of somebody who would appreciate the level of service we provide, please send us their name and number and we'll be happy to follow up and take great care of them! Lets have a fantastic day!.

Harry R. Brubaker, MBA, RRG, ECO-Broker, REO Cert.
Licensed in DC, MD & VA

Brubaker & Associates Real Estate Advisors
Keller Williams Realty International, Inc.


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