Why does ot take so long for the bank to respond. ?

Asked by sdollies, Bellflower, CA Fri Feb 13, 2009

We found a home in Fallbrook Ca, that was listed for $630.000 and was told it was a short sale and we offered $5,000 more making it $635.000 dollars. Will the bank send some one to look at the house or will the Bank except our offer since they are so boged down with short sales. We are fearful that the Bank will want maybe $50.000 more and we can't go that high. The house his been on the market for two years and has not sold yet. So we are praying that the bank will take our offer. Do you think we have a chance?

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Jesse Madison, Agent, Rancho Santa Margarita, CA
Tue Dec 14, 2010
Your post is from Feb 09 so I would be curious to hear how it turned out...
Timelines have improved tremendously. There are still some hold-ups but overall response time is much better.
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Melissa R La…, , Oceanside, CA
Fri Apr 30, 2010
The Bank does what they call a BPO, this stands for Broker Price Opinion. It is their way of doing an apprasial to find out what current market value is on the home. The bank is NOT just accepting short sales because they have so many. This is one of the main reasons why short sales take so long, because they have so many, the process is drawn out for months and sometimes over a year. However, I have not seen a home be in an active short sale for 2 years. Usually the bank will foreclose on a property by then. It is possible that the home owner filed bankruptcy, if this is the case then the bank can not foreclose. My best advise is to contact the listing agent and verify that they have current and continous contact with the bank, this is crucial for a successful short sale. Also, ask the listing agent why its been on the market for 2 years, they need to clarify what the hold up has been. Futhermore, if you agent has pulled comparables and the offer of $635k is in line with fair market value then you should be good as far as that goes.
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George H. Mo…, , Rancho Santa Fe, CA
Thu Jan 14, 2010
Banks have been trying for years too get into the Real Estate Business. If they drag their feet long enough this Socialist Government will be more than happy to help them destroy the real estate industry. The NAR is no help either.
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Jane Grant, Agent, Aguanga, CA
Thu Dec 31, 2009
Since this question was asked back in February, I am hoping that things turned out well for you by now. However for anyone else researching this topic and wondering why banks take so long to respond here's a couple of reasons:

In some cases banks have a moratorium on foreclosing on certain types of loans until 2011, Read more about this here: http://janegrant.wordpress.com/2009/06/07/temecula-real-esta…

Every situation is different and every property history is different, and also each bank is handling their inventory a little differently. Banks are not wanting to spend extra money on more staff...remember that banks are in the business of making loans and were not prepared for the huge amount of defaults that has taken place.

Buyers who are patient can find very good opportunities for purchasing Real Estate.
Web Reference:  http://www.soreal.biz
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Voices Member, , Benton County, OR
Sat Feb 14, 2009
sdollies, Would it suprise you to hear that the Banks don't know what they are doing? They are trying to respond to the Gov., borrow more money, come up with excuses and explanations, diguise a new bonus package and figure out offers for houses that involves all that confusing math stuff.

So sometimes they hire others to participate in the process, unfortunately those people are trying to respond to the Gov., come up with excuses and then there's that math stuff..

It's a very slow process at this time, but it can be done.

Good luck, Dunes
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Jacqueline W…, Agent, Irvine, CA
Sat Feb 14, 2009
Short sales are a great way to get a good deal, but, you must make sure that the agents on both sides know what they are doing or you could sit around for months, waiting, only to find out - the Seller didn't qualify or your offer was not strong enough and that doesn't just refer to the price you are offering. Sit down with your agent and find out what s/he has done to:

- ascertain the Sellers have a strong probability of qualifying for a short sale
- make sure the Sellers agent knows what s/he is doing
- to make sure you offer is strong
- to follow up on the status.

You also need to know the market value of the property since part of the approval process will include a broker price opinion. That will let you know how your offer stands compared to the value the bank will assign.
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Birgit Dugan, , San Diego County, CA
Sat Feb 14, 2009
Good Morning - Your scenario is all too familiar in this market. Unfortunately all too often the purchaser gets caught up in a buying nightmare and ends up not getting the house. A small percentage does close. The problem is when the home is also in default. The loss mitigation and foreclosure department have no contact with one another. Many time the home is foreclosed on before the bank can respond to an offer. The industry has been having problems with this for many years. They are working on solutions. My suggestion is you do not become attached to this home, don't spend any money towards it, and be patient. You might start looking for another home in the mean time. The odds may not be in your favor. Good luck to you...
Birgit Anglin
Windermere Exclusive Properties
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Poonacha Bol…, Agent, Metuchen, NJ
Sat Feb 14, 2009
It is getting better now. Also just timing and no one wants to make a wrong move. They also look at their loss ratios to asking price.
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Bill Eckler, Agent, Venice, FL
Sat Feb 14, 2009

This is an excellent question.

For the bank to understant the often complex financial situation associated with a property, it can take considerable time. They are often left with unraveling a tangled financial mess consisting of not only a mortgage but a second mortgage, line of credit, liens, divorce/separation, taxes, HOA fees etc.

What we see from the surface can appear simple but below the surface can be a nightmare.

Good luck
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Isaac Bensus…, , 92037
Fri Feb 13, 2009
sdollies. I hope you are trying to purchase your home with a help of a Real Estate Professional. What does your agent tells you? What does the Seller's Agent tells you? How long has it been since you submitted your offer? Banks in short sales situations take their sweet time to respond even if its a fabulous offer like the one you wrote. I believe that you have a great chance to get the home but the ones that are more qualified to respond would be your agent and the Seller's agent. Keep on asking them what's going on. Good luck.
P.S. If you are not working with a Real Estate Agent please give me a call and I will be happy to try to help you out.
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