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Foreclosure Contracts - Why Don't Banks Know How Long It Takes For Loan Approval?

By
Real Estate Agent with Gayle Harvey Real Estate, Inc.

Foreclosures are owned by banks, aren't they?  Then why don't they know how long it takes for loan approval?

Once again I have had a contract for a foreclosure accepted by the selling bank.  Even our closing date 5 weeks away has been approved.  Sounds great doesn't it?  Well here's the kicker...we have 21 days for loan approval and the appraisal has to be within 19 days and if anything is found that would prevent the purchase of the home the seller has to be notified within the same time frame.  Of course my buyers lender has said that we need at least 30 days for loan approval on a FHA loan and many appraisals have been taking a long time lately. 

This scenario happens more times than not.  In order to make the sale happen in an unrealistic timeframe, it is crucial to have a team of lender, Realtor and attorney who stay on top of things, are responsive to you and to each other, and push to make the sale happen in the tight time frame.

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National Security Delaware Security Systems Free
Home and Business Alarms, Camera Systems 24 Hour Monitoring - Wilmington, DE

They think we are mind readers, what option do they have except to wait?  Yeah I know...

Jun 29, 2010 05:29 PM
Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse

Well, the problem is the penalties that the buyer can incur when theiy don't meet deadlines in the foreclosure transactions.

Jun 30, 2010 04:09 PM