slow response from banks? - Renting & Real Estate Forums

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Forums / Investment Discussion / Renting & Real Estate / slow response from banks?

Author	Message
Mitch Members 632 posts Location: Norway Occupation: Statistician Age:	#299990 2008-05-19 21:19 GMT
	We made an offer on a couple of houses (offered full asking price) 3 weeks ago and we have yet to hear back from the bank. Not even a counter offer. Why are the banks so slow? Is this typical? I should mention these are short sales. It's so frustrating because we don't know whether to keep looking and make more offers or just wait. Anyone know?


SweetLove Members 619 posts Location: Malawi Occupation: Numismatist Age:	#299991 2008-05-19 21:25 GMT
	I put an expiration date in my offers for just this reason. You could sent the bank a letter rescinding your offer so you don't get stuck with tho houses. And, YES, banks can be slow. Seems they have to run these through committees that only meet once a month or so.

Gunship Members 620 posts Location: United Kingdom Occupation: Urban planner Age:	#299992 2008-05-19 21:26 GMT
	They are overwhelmed...300 files to one worker is what I am told....Expect to wait at least a month to get a response on a short sale....

BlingBling Members 589 posts Location: Nepal Occupation: Scholar Age:	#299993 2008-05-19 21:27 GMT
	Call the bank and tell them that you have found another house, for a little more money, but you were going to give them a chance to accept your offer before you rescind it. If you act as if you don't need them, they will bite.

Orchid Members 594 posts Location: Ukraine Occupation: Student Age:	#299994 2008-05-19 21:27 GMT
	Short sales can take months. The realtor should have explained that to you. REO homes can take a couple of weeks. I put an offer on an REO home like two months ago, and I just got a counteroffer last week. Just be patient.

Barbwire Members 588 posts Location: Ethiopia Occupation: Theologian Age:	#299995 2008-05-19 21:31 GMT
	banks have gotten a lot more cautious for obvious reasons. they're checking your credit, possibly getting appraisals, etc, etc. it takes as long as it takes. if your credit isn't very good, it will probably take longer and you're unlikely to get approved.

KittyInCollinder Members 634 posts Location: Ireland Occupation: Director Age:	#299996 2008-05-19 21:41 GMT
	If you are in a hurry you need to buy directly from a seller, in a normal sale, one where no bank approval is required. If you are buying bank owned homes count on about 3 months before things start to move. They are collecting offers and will for months.

Windows Members 556 posts Location: Martinique Occupation: Doctor(MD) Age:	#299997 2008-05-19 22:21 GMT
	I am confused in one sentence you said you offered full asking price and in another sentence you said you put in for a short sale. I work at the bank maybe they did not approve your short sale or you did not have everything that you needed in your shortsale package. Because is a full offer as you stating in the beginning that would have jumped all on that

Discodancer Members 583 posts Location: South Africa Occupation: Trademark attorney Age:	#299998 2008-05-19 22:36 GMT
	The person that "owns" the house listed it for a price and you offered that price--but the "owner" will not get enough out of the sale at that price to fully pay off the mortgage, so you and the "owner" are having to wait for the mortgage company to say they will forgive the balance of the loan. This is a rough idea of what a short sale is. The bank is in no hurry. They don't care if you buy the house or not. They may never answer your offer, or they may answer in a few more weeks. This is how it is to work with a short sale. My last offer on a short sale, the bank countered back higher than the list price. This may or may not be a good deal. Withdraw your offer before making an offer on another house- you would hate to be obligated to buy several houses.

WhoLeOw Members 618 posts Location: Guatemala Occupation: Cosmonaut Age:	#299999 2008-05-20 12:23 GMT
	I put a bid on a short sale Feb. 1. I heard back that they accepted my offer late in March. It is now the end of May and they still have not signed the contract. I am paying extra rent while they sit on their butts. Is there anything I can do to move this along?