Are banks all just waiting??

Question

I'm waiting on an answer on an REO offer for 6 days now.  Supposedly I'll know tomorrow.  I'm just wondering if these banks are all just waiting to see what Congress is planning or if things are business as usual on existing inventory?  Seems like everything has just stopped dead - even the realtors aren't calling this past week.

Doug Henson · Answer

Hi Jean.  I was in Myrtle Beach back in July and bought a forclosure.  The place was listed at 129,900 and we bought if for 117,500 - This happened in three days.  Now we wound up with a fantastic real estate agent down there who knew the person in charge of the property with the bank and I suppose that is why it got done so quick.  Proving once again I suppose that it sometimes is not WHAT you know but rather WHO you know.... ;-)
  I fail to understand why it is that banks are so slow to act on any reasonable offer, it should be interesting to see what effect the government bailout will have.

Jean B · Answer

Thanks for all the info. I guess it just takes patience, something I need to practice. LOL.

Melissa G. · Answer

Jean,
I've been trying to purchase a home from Wells Fargo/PAS since April.  It took forever for them to put a price on this house too.  They started asking what was owed -- $840K  Which was a joke since there are 32 houses for sale in this neighborhood where home values have tanked.  They are now down to $689K.  We're $40K away from their price and they still aren't taking it!  They countered $3,000 below their ask.  What a joke!  I've moved on.  They can sit on the house for another year.  BTW, I'm the only buyer they've had on the house since they listed it.  I'm now pursuing a home in the same neighborhood owned by UB&T.  I put an offer in on Thursday and waiting for a response.  With my offer, I have included a long letter cluing them in on what's happening here, photos of the condition of the house as well as the current CMAs.  Maybe they will see the light.

Greg Schickedanz · Answer

The asset managers are overworked and underbrained, these things take both patience and persistence! Hang in there and ask every day!

Aaron Norris · Answer

Lenders are catching up with the new rules put forth. They're trying to get in touch with all the people fasing foreclosure.  Check out HR3221

Our local court house steps caller says he expects it to pick up again after Christmas.  Same goes for many of our REO friends.

Ana Hyler · Answer

Last year we put an offer on a floreclosed property that has been in the market for 1 week. we knew it got a lot of attention so we offered pretty close to asking, several days went by and no response from the Bank, we were told the person making the decition had a personal issue....well.... I guess that was just an excuse, because the day after, they took another offer. Anyways, we were happy they did not accept our offer cause this property was in an area that lost a lot of value. We consider our selves blessed by God.

Ingrid Nagy · Answer

another thing I forgot to mention is that my offer to was all cash.  I think today the banks just want the best price and don't care whether its financed or paid outright.

Ingrid Nagy · Answer

Jean, I'm not quite sure what you're asking.  The asking price vs. what is owed or the amount due at foreclosure is sort of irrelevant if this home is an REO.  You need to concentrate on what you believe is the current value of the home.  The home I recently bid on was foreclosed on with the homeowner stiffing the bank for $91K.  The home went up for sale at $115K.  My offer was beat by another purchaser.  In this situation the bank made out on the foreclosure-they have covered their unpaid mortgage and legal costs with excess; however this is not the norm these days.

Jean B · Answer

Going to make my first offer to Well Fargo on a place I would like to live in. They have it listed almost double of what is owed, 56% more to be exact. I was going to offer cash, about $10K over what is owed. Thoughts? I guess I am dreaming..LOL. It took them almost 2 months to even get a price on the darn thing. Anyone have success with lower then asking prices with Wells? Thanks for letting me vent.

Ingrid Nagy · Answer

Here's an update:  offer placed 9/21.  Today 10/6 still no answer.  Reason:  "PERSON in charge of reviewing ALL OFFERS for the REO had a family emergency".