Just curious, why would a bank take 30 days....

By Lu Kalaj

Real Estate Sales Representative with Vision Realty Centers

June 25, 2008 01:07 PM

to give an answer on a purchase agreeement, of $10K less than the asking price?

Does it normally take that long for a short sale/foreclosure bank transaction?

The asking price is $175,000, and a purchase order of $167,000, and we're still waiting for the bank to respond? Should I submit a withdrawal? Do I have to when the expiration date of the offer has passed?

I think this is crazy. Real unusual, or is it normal behavior for a bank to hold out on an answer? My buyers have outgrown their patience, and want to move on. Tomorrow they will walk away from the purchase agreement, and make another offer on another house.

Any advise on how to deal with this particular issue? Lu

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Jean Powers

Kane & Associates call 510.908.9002 - Alameda, CA

CRS,e-PRO,HAFA,SFR Broker, Northern California

Lu, I wish it only took 10 days! I have been waiting for over 2 months for a response

Jun 25, 2008 01:12 PM

Veronica DeCarolis

Weidel Realtors - Flemington, NJ

EKE! I'd be calling the bank about 10 times a day until they responded. Good luck. Veronica

Jun 25, 2008 01:13 PM

Eric Reid

Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

if it was $1 or $10,000 the same amount of time would pass the bank has to run each stage of the process equally.. remember the bank was built on processes what seems like a no brain-er to us all.. still has to go step by step by step and it could take 30-60 days.

Jeff&Grace Safrin

F.C.Tucker 1st Team Real Estate - Valparaiso, IN

SpousesSellingHousesTM

Hello Lu - a few different points about your questions

#1 There is a big difference between short sale and foreclosure. If it is a short sale, it also

Depends on how many files are being processed by this lender - we have one getting ready to close in July and the offer was written in April and accepted finally in June over 60 days to wait for an answer - most buyers won't wait this long. This One processor had over 100 files on his desk ( nationwide ) and left for a few week vacation ( no one covering during this time ).

Recent Indiana legislative changes won't allow this LONG Time to Respond to SHORT Sales from lenders without chance of nice sized fines after Jan 1st 2009.

Check with you state REALTOR association about any minimum response time laws that may apply.

Our IAR attourney wrote a wonderful guide for short sales that I blogged about that every Realtor should share with clients so they know it is a very lengthy and difficult process.

here is the link

Good Luck

Sincerely,

Grace

Jun 25, 2008 01:24 PM

Nancy Pav

Century 21 Redwood Realty - Ashburn, VA

Nancy Pav, Your "GottaHave" Realtor

I like the new laws in Indiana. In Virginia, it takes quite a long time to get a response on a short sale.

I don't show them. I will take buyers to Bank owned or seller owned properties. When I explain the delay, they don't want to wait.

Jun 25, 2008 01:32 PM

Jay Thompson

Zillow - Seattle, WA

I've had banks take 60 days to DECLINE a short sale offer. Then in the next couple of weeks the home was foreclosed on, the bank took it back, and listed it at $10K *less* than the offer they declined.

Don't even bother to try figuring how how/why they work. It's ridiculous.

Jun 25, 2008 01:35 PM

Marchel Peterson

Results Realty - Spring, TX

Spring TX Real Estate E-Pro

LU, If they have found something else I would tell them to move on. These banks that don't get back with us are incredible!!!

Jun 25, 2008 02:58 PM

Pam Winterbauer

Pam Winterbauer Real Estate - San Ramon, CA

"Providing Blue Ribbon Service"

In this market I would take the offer and run to the closing table.

Jun 26, 2008 04:58 PM

Just curious, why would a bank take 30 days....

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Lu Kalaj

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