10-16-2008 06:19 PM
10-17-2008 02:57 AM
Among other things you asked : "Is it normal for the bank to take this long to sign and return a fully executed contract?"
The "contract" you described is not a contract nor is it "fully executed" -- both parties must sign for there to be a fully executed contract. What you received back from the bank was an unsigned document not legally binding on the bank but probably binding on you as an offer because you signed it. What if anything did the document say about time to accept or reject? What if anything is your realtor doing? Does your realtor represent the seller/bank? If so, that explains why you received an unsigned "counter". The bank can do anything it wants to do as it hasn't executed anything.
10-18-2008 10:27 AM
10-18-2008 05:12 PM
10-18-2008 07:33 PM
While working with buyers on REO properties, generally the bank takes about 1 week to return all the paperwork signed. However, I have seen it happen as quickly as 2 days, but I also have had one transaction where it took the bank about 2 1/2 weeks to get the contract back signed. Each bank varies.
Bank owned properties are handled very differently in that most listing agents input the offer into a computer system which is transmitted to the asset manager at the bank. They then respond via the same system with a counter offer. All counter offers are done verbally. Once agreed to verbally, the listing agent writes up the counter/addendum and gives to the buyer to sign prior to the bank signing it. They send the whole package via mail to the bank to sign. Some banks are quick; others are very slow, unfortunately.
See all my deals & reviews
10-19-2008 09:31 AM
11-05-2008 08:23 PM
Chiming in late on this one, but I hope it's still helpful.
In our case, we offered, had a counter-offer from them, they rejected our counter-offer to theirs, we re-offered a tad higher, and the bank accepted. After that couple of weeks of negotiating, once we settled on all the details it was pretty quick to get things moving.
However, the devil is in the details and with bank-owned properties it seems there are substantially more details and hoops that can complicate the process. For example, even though things went relatively smoothly, it did take longer for the docs to all get signed and returned by the bank. Primarily, this was because the listing agent for the bank was here in the Bay Area. The bank was in Los Angeles. The bank's asset management guy was actually a lawyer based in Texas who had to see and sign off on things first. And the title company was of the bank's chosing and was located in Los Angeles.
We didn't know all of that at the time but as we waiting (impatiently) for things to happen we started finding out that everything was being sent one place before being sent to another before being sent to another before being sent to our realtor. And there was a fair amount of paperwork that was NOT signed via fax or scanned email and was actually FedEx'd between the various parties.
We were in escrow and the listing was removed from the MLS right away, but we didn't do our inspections or start our contingency periods until AFTER we received the fully executed (signed) contract from the bank. So we waited.
Once it was all said and done, we got the house and we've been in for a month. We got what I believe is a great deal (still much lower in price than comp listings nearby and we didn't have to pay any closing costs and even got some cash refunded to us by the title company after). I think we'll be happy here for a long time -- and even though the process was a tad stressful because banks don't seem to abide by the same time-constraints as regular sellers -- we're glad we went with an REO!
Good luck! And update this forum with how it all went for you when you've got things figured out.
11-09-2008 01:29 AM
We bought an REO in July, it was our first home purchase and it went quick. We put an offer in on a Saturday, by Monday morning it was accepted. We closed and had the keys in our hands 30 days later. Our Redfin agent dealt directly with the asset manager, not the listing agent, so things went quick. We even got the bank to pay $4000 in closing costs due to minor issues found during the inspection, and they even gave us $1000 extra as a "home improvement" incentive. The best part is that they had just remodeled the whole house including exterior paint and front lawn sprinklers.
I am a true believer in buying an REO. We still feel like we stole this house from the bank since no other comparables in the neighborhood have sold for even close to as low as we paid for this house. The Redfin rebate after was just the icing on the cake!
11-09-2008 01:39 AM