How long should you give a bank to respond to offer?
We have made on offer on a home that is in the process of foreclosure. The Selling agent ordered a HUD1 statement and supposedly submitted to the lenders. The property has a 1st and 2nd. How long should we reasonabley expect until the bank gets back to us/them. How do we know the selling agent really submitted the offer to the banks. It has already been 7 business days (not including sat & sun) offer is 17% below perceived market value.
September 25th, 2010 at 9:17 pm
You don’t truly, but, 7 days seems like a reasonable amount of time. If you know the bank, I’d call them and see what’s up.
September 25th, 2010 at 9:55 pm
Foreclosures or short sales take quite a bit of time for the bank to respond. Rest assured that the agent submitted the offer, he wants to get paid. Sit tight and wait it out, it could be to your advantage.
September 25th, 2010 at 10:16 pm
It doesnt take very long for a lender to approve/deny a HUD1… were you pre-qualified for the loan?… also, maybe they are waiting for an appraisal.
September 25th, 2010 at 10:59 pm
Banks sometimes take a while but most of the time they are right there with it. They really do not want to hang on to it. Is the first and second with the same bank? If not the First lien is probably trying to work out arrangements with the second lien for short sale and that could be what’s taking a while. If the selling agent is representing the bank and not you then why not try going to the bank direct and asking some questions for yourself.
September 25th, 2010 at 11:18 pm
I’ve seen some of the loss mitigation departments of lenders take up to a month to reply, especially if they are not overly thrilled with the value of your offer. On occasion, they NEVER reply.
September 25th, 2010 at 11:46 pm
first you need to realize that 7 business days is not banking days which most businesses recognize 5 days is considered banking days. An agent has a fiduciary duty (read your contract about duties owed) to submit an offer. As for the bank getting back to you- it could be any ones guess considering the amount of foreclosures, bpo, short sales that the banks are now dealing with. The HUD 1 statement is just a check and balance sheet it is NOT your contract. The bank is overwhelmed and It could take up to 30-45 days in some cases.