I accepted a bank's counter offer on a REO a few days ago.How long does it take and why the delay?

Asked by ?, 95128 Thu Apr 7, 2011

I accepted a bank's counter offer on a REO signed and turned it in within one day. Before their response was a few days. Its been almost a week I know there was another offer so I am wondering if they are waiting for the other person's offer? I also know I have the higher/better offer so I am confused on the delay.

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15
Deenateen, Home Buyer, South Miami, FL
Wed Jun 10, 2015
Banks are overwhelmed with the volume of REO homes they are handling. The best way to expedite the process is to approach the listing agent. One West Bank properties can be accessed here: https://www.indymacmortgageservices.com/IndyMac/REO/

Reference Link: http://reohomes.org/directory/
2 votes
Paul Rinde, Agent, Menifee, CA
Thu Apr 7, 2011
As others have said it can take some time for a response from the seller of an REO. I have had it take on ocassion up to 10 business days to get a executed Addendum & RPA back from the seller. This delay is typically due to the number of people involved and their work load. Or it could be that other offers have come in. Lets hope this is not the case.

It appears you might have signed a Multiple Counter Offer which should specify the amount of time that a response must be given. Don't be misled into thinking the highest offer always gets accepted. A seller can decide to accept any offer they want including offers that they have received since they put out the Multiple Counter Offer to you.

It would be appropriate for you to request your Realtor to make a phone call to the Listing Agent to inquire of the status of your offer and if there are any new offers that have come in.

Best Of Luck
1 vote
Michelle Car…, Agent, Coppertino, AL
Sun Apr 10, 2011
Have your agent call and ask the bank when you should expert your response. If it was a multiple counter offer, price may not be the only factor - if the other one is all cash with no contingencies for example. How do you know (or who told you that) you are the highest offer? 10 days is not uncommon. Good luck.
0 votes
Richard Matu…, Agent, San Jose, CA
Thu Apr 7, 2011
As a REO broker with One WEST BANK all contracts are not finalized until Senior management signs off on the contract and all bank addendums as submitted by you for their final approval.The bank can instruct the agent to continue taking offers until final management approval of your contract and the addendums.
Richard G.Matusich Realtor DRE#00358728
0 votes
Andy, , California
Thu Apr 7, 2011
Make sure what you signed was a counter offer rather than addendum.

Andy
0 votes
?, Home Buyer, 95128
Thu Apr 7, 2011
Thank you for all your replies. There is one other offer and the reason I know my offer is the better offer is because the listing agent from the bank told us so. My Realtor is in communication with the other listing agent and she is waiting for the bank's signatures. I was concern that for the delay because in our previous counter offers the bank responded within 2 days. Its almost a week that is why I am worried.
0 votes
Norman Aless…, Agent, San Jose, CA
Thu Apr 7, 2011
Homebuyer,
Was this a multiple counter offer of " highest and best "? If so I would have your agent contact the listing agent and find out which offer the bank accepted. If it was not a multiple counter offer then they may be waiting on the other persons offer, but I doubt it unless the listing agent wrote it. In either case have your agent contact the listing agent to find out what's what. Some times when you lose a bid the listing agent doesn't bother to even let you know, so find out.
If you are NOT using an agent then I pity you as you may think that going threw the listing agent gives you an edge, but it doesn't and usually puts you at risk.
I have done many REO'S and I know of what can and does happen on these transactions, you REALLY need someone on YOUR side.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
DRE# 01397256
0 votes
, ,
Thu Apr 7, 2011
Hello,

Keep in mind that an REO transaction involves a collection department, asset management and likely an attorney so the process is often quite slow. It is quite likely that they are waiting for all offers to be received in an effort to get the best price, and the fact that there are several levels of review is what drives the delay.

The listing agent has to manage this and in turn communicate well with your agent in order to get a real time line.

Best,

Eric Nelson
eric@svcfunding.com
DRE# 01258488
NMLS #120412
0 votes
David Sciplin, Agent, San Jose, CA
Thu Apr 7, 2011
It's important to know what motivates lenders; it's the net amount they receive from the sale. Did your offer contain a lot of things you were asking the lender to pay for? If they have other offer, even if they are for less money but produce a higher net return, the lower offer will be considered before yours. You also need to understand as a buyer, lenders are not in the business of owning property. They're out to make money. If you low balled your offer they will hold out to see if a stronger offer comes in. Time is really not a factor, money is. There are ways to attract the attention of a lender and get the offer accepted. It takes the right paperwork and a reasonable offer. Your Realtor or agent should be able to point you in the right direction. As others have mentioned you also need to be patient. Sit down with your agent and ask for an explanation.

Good Luck with your purchase.

David Sciplin
Better Homes and Gardens Real Estate
0 votes
Andrea Wince…, Agent, Milpitas, CA
Thu Apr 7, 2011
With REO transactions, there could be a myriad of reasons for delays. Even after (if) your offer is accepted. Your agent (the agent who wrote your offer) should be working with the listing agent (who is representing the bank owner) and advising you as to the delays specific to your transaction. Each transaction is different especially for bank owned and also short sales, patience is a virtue.
0 votes
Terri Vellios, Agent, Campbell, CA
Thu Apr 7, 2011
What is your agent and the listing agent saying about this? The listing agent should be able to communicate to your agent as to what the status of the offer is.

The banks do not respond like a traditional seller transaction. They have others who have to review and sign the documents. This can take a while. From what I read your concern is are you in the lead or should you have another response. So again, have you agent get an idea from the Listing agent.

All the Best to you.
Web Reference:  http://terrivellios.com
0 votes
Marie Souza…, Agent, Centerville, MA
Thu Apr 7, 2011
Banks take much longer to get back to you on offers, negotiations etc. They are overwhelmed & inundated with property foreclosures. I would just call your Agent to see if you can get an update & try to wait patiently!
Web Reference:  http://www.mariesouza.com/
0 votes
Richard Gonz…, Agent, Lake Oswego, OR
Thu Apr 7, 2011
Generally it takes up to two weeks to get a ratified contract in your hands depending on the asset managers workload. Sounds like you were part of a multiple counter offer, at which point an asset manager generally goes with the highest and best offer. Do you have a REALTOR or are you working with the agent? Either way stay in touch with them and let them know you are waiting for a response.
0 votes
BG, Home Buyer, Phoenix, AZ
Thu Apr 7, 2011
Just ask your agent to check in with the listing agent to see where you are at and then wait.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Thu Apr 7, 2011
Curious how you know the other offer is not as good. Even if your offer is more money the bank can pick either or wait longer. Until they sign the offer they can pretty much do anything they want. Banks are not like normal sellers, they are not using their personal funds so they wait, have meetings, do BPO's and it takes some time. One week is not too bad when a bank is involved.
0 votes
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