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Another Lender Letdown

I have been working with a cash buyer for the past 2 months. We have been looking primarily at REO and short sale properties. Both my buyer and myself were aware of the challenges facing these types of properties.

Well we found a nice home offered at $275,000. We put an offer in at $255,000 then waited for a response. We knew there were 2 lenders involved and that this would add to the process. The listing agent stayed on top of our offer and trying to work with us was able to get one of the lenders to take the offer. Needing both lenders to accept the offer, we knew this would be a challenge.

We waited almost a month for an answer. When we did hear back, the second bank wanted more comps in the area which we provided. We then waited another 2 weeks and got our answer. The bank said they would never take an offer under $265,000. My buyer being frustrated decided to walk away from the deal.

2 weeks after we walked from the deal, my auto search on MLS shows this same house with a new price of $264,000. "2 WEEKS". What happened to "Never Take An Offer Under $265,000". Now we all know that at this price the bank will see offers coming in much lower than ours. We could have had this deal closed and off the banks books.

This is just another example of why the banks can't seem to get their act together and get the Foreclosure problem cleared up. I don't care how "backed up" they are. This is a crisis and as such, they need to circle the wagons and take charge. By showing their lack of leadership, they are only prolonging this process and quite possibly making it worse.

Steve Glose

The Florida Living Team.com

Posted by Steve Glose, Keller Williams Central Florida on 11/20/2007 09:43 PM

Comments (7)

central florida real estate, the florida living team, foreclosure, lenders, short sale

7 Comments on Another Lender Letdown

Short sales and pre-foreclosures can present amazing opportunities in the current market. But they are not without headaches!

11/20/2007 09:51 PM

by Kaushik Sirkar (Call Realty, Inc.)

Quite frankly Steve, why did you folks wait that long for your offer to be accepted or not? 3 days man, that's it. Here's my offer, if it sounds ripe....let us know. There is no reason in my mind to drag things out with anything other than the full freaking Monty! Personally, if I present an offer, like it or reject it....I except an answer within 3-5 business days. I'm on the mortgage side of things, I don't represent the way you do. I don't play Realtor and I don't play a fancy version of such. ....

11/20/2007 09:54 PM

by Jason Sardi, Pennsylvania Mortgage Broker (First Choice Equity Group Inc.)

Your all to right, the banks are not getting it. I guess they will when 90% of their inventory ends up in auction and the prices get them there.

Take care!

RJH

11/20/2007 09:58 PM

by Empire Realty

Jason- In a normal transaction 3 days would work. In a foreclosure, this is not the case. Here in Florida, our contract have a line for acceptance. I only give the sellers 2 days to respond or the contract expires. The whole time our offer was waiting to be accepted it was technically void on our side. Only in a dream world will you only get an answer from these banks in 3 day. No matter how good your offer looks, these banks have such a long process it could take well over a month to get an answer. However, if you know of a faster way to get these offers accepted, there are probably thousands of Realtors who would love to know your secret.

11/20/2007 10:13 PM

by Steve Glose, Keller Williams Central Florida (Keller Williams)

Steve, you are absolutely correct they need to get their program together. Soon Realtors will steer clear of Short Sales and wait until they are REO's to make an offer.

11/21/2007 01:05 AM

by Mark Horan P.A. "The Resident Chef" at Keller Williams (The Resident Team at Keller Williams At-The-Lakes)

You know Steve, after re-reading and being more awake and astute, I do agree with you. I disagree with that Sardi character above:-) Wish I had the secret, probably could make a nice mint. But you are right, in these particular transactions, the red-tape and process can be very timelyl.

11/21/2007 08:20 AM

by Jason Sardi, Pennsylvania Mortgage Broker (First Choice Equity Group Inc.)

Steve,

I read a blog this morning about a new group here in AR that is going to deal with foreclosure/short sale topics. I'm with you, they are a headache and sometimes not able to get it done in time. But then you see what happened with your offer, wow how irritating.

Thanks for commenting on my t day blog.

I used to live in FL and covered Orlando in my territory. Great memories there! Enjoy your sunshine.

11/23/2007 09:15 AM

by Karen Moorhead Ann Arbor Area Real Estate (Keller Williams Realty)

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