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REO Timelines - Why Are They So Long?

By Kevin McGrath

Real Estate Agent with Long & Foster Real Estate Companies- Fredericksburg/Spotsylvania

February 26, 2008 10:16 AM

I hear a lot of horror stories about Foreclosures & REO's and the time it takes to get answers to offers and to get a contract Ratified. Days to get an answer. Weeks even. A month to get Ratified. All sorts of things.

I do a fair amount of REO's, and I have not, at least on the listing side, ever had this problem. The most I have ever had to wait for an answer to an offer was 48 hours, and that was only because the Asset Manager was out of the office. I have never had it take more than 48-72 hours to get a Contract Ratified, and the norm seems to be on the 48 hour side.

So what is going on out there? Why so many problems and so many horror stories? I actually had an agent tell me the other day that "Old Time Agents" will stall so that they can work both sides of the deal. My head hurts just thinking about that. Seems like a lot of work.

What is the normal time-line that agents are seeing out there? Are you having trouble getting answers to your REO offer's?

Kevin McGrath

The Wallace & McGrath Team

Coldwell Banker Elite - Fredericksburg VA

"Selling Homes & Foreclosures In The Fredericksburg Virginia Area

www.fredva.com

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Stacy Magid

Century 21 New Millennium - Woodbridge, VA

Like you my REO transactions never take a long time usually I hear an answer as little as an hour to 24 hours on an offer when I am the listing agent. I have dealt with one that took almost 3 months but that was because the agent lost our offer and wasn't doing his job.

Feb 26, 2008 11:05 AM

Melanie Ross

Coldwell Banker Solano Pacific - Benicia, CA

Benicia CA & Vallejo CA Real Estate, 707-319-2828

Our asset managers are very responsive with the offers, we get them accepted and then the buck stops there. Call and call and send and send why oh why did you accept an offer/counter offer and we get the paper back to them but we wait and wait and wait to get ratified contracts. The buyers are tied because the loan officers will not move that far ahead without signed papers. IT is very frustrating and clock is ticking. Just today we got the contracts signed finally, and the buyer walked before they could be faxed to us.

Feb 26, 2008 01:44 PM

Erik Hitzelberger

RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY

Louisville - Middletown Real Estate

I've made several offers on REO props in the Louisville area. The general response time for a verbal acceptance or counteroffer is 2-5 days. However, getting the papers signed and back to the bank so that the loan process can begin takes another 3-5 days. This does frustrate the buyers as they are anxious to proceed, but the lender wants a signed contract before ordering appraisals, etc.

I haven't had anyone walk away, yet.

Feb 26, 2008 02:03 PM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Can't say I've had that problem with REOs in Sacramento. Typically, lenders respond within 24 to 48 hours. But the "addendum" to the contract, which is often 10 pages or more and basically a rewrite of the entire contract, can take about 10 days.

Feb 27, 2008 01:11 PM

Anonymous

Jeannine Gruenwald

my husband and I have made offers on eleven houses since last march. each time the banks have taken weeks to respond. one house we made an offer for 26k over the asking price. we just cant get anyone to accept our offers. if this one doesnt go through (they said they would get back to us within 3 days, tomorrow is day 9) we are going to give up

Dec 04, 2008 02:51 PM

REO Timelines - Why Are They So Long?

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