Bidding process on bank foreclosure. How do they respond to my bids?

I am bidding on a bank foreclosure. I do not have an agent and I deal directly with the banks agent. What information can I expect once I place a formal bid? Do they give me a formal response? How long does it usually take? Is there a maximum time one can wait for a response from a bank? Any other details on bidding on and buying a bank foreclosure is greatly appreciated!
In Buying Property - Asked by Roman M. - Feb 17, 2011
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Answer(s)

Rob B.
Chandler, AZ

Roman.... All banks are different in their process. The bank's agent should provide you the information you seek from your questions? Your questions are to answers you deserve as a potential buyer of the specific property. There is a very interesting presentation on YouTube that you should see about bank short sales. This will be an eye-opener to you. http://www.youtube.com/user/fiercefreeleancer I recommend you view this presentation to "follow the money", to witness how the banks operate when you begin to deal in this arena. Good luck Roman.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Feb 17, 2011
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Nancy G.
Broker/Agent
Sandy Springs, GA

You can hire an agent such as myself to help you through the process. Yes, I have experience here. You can expect a response from the bank but it can take a longtime. I have always gotten a response. I suspect there is no maximum time. Good luck. Foreclosure doesn't always suggest the best way to buy a property.

Feb 17, 2011
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connie k.
Neptune, NJ

Roman, why don't you have a buyer's agent to represent you? Their fiduciary responsibility to you would serve you well with bidding, negotiating and securing
properties for you. Every transaction and response from each bank is different.
Sometimes you will only get a verbal from the list agent. Sometimes it will be
in writing. At times it will be a quick response and sometimes you have to
wait days. If there is more than one offer on the table, all prospectives may be
asked to give their "highest and best" offer by a deadline in order for the bank
to select an offer they deem best for them (it isn't always the highest priced
offer that gets the deal either). Sometimes, the bank will select an offer and
run with it and never ask for highest and best although they have multiple
offers. My advice to my buyers is to always put their best foot forward when
making an offer (especially the highest and best offer scenario) and that way they won't second guess themselves if they don't
get the property. Also, it is a great feeling when the selected offer is no longer
in the running and the bank comes back to you to see if you are still interested
in the purchase. Wish you the best Roman...

Feb 18, 2011
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D D.
Broker/Agent
Irvine, CA

The banking landscape is getting much more compex for the banks internally and with the large number of loans that have been passed through the FDIC and are now in the hands of banks that have acquired them through a banking takeover process AND are subject to a FDIC Loss Share Agreement it is quite complex and time consuming to work through the process.
Fortunately most banks do consider the brokerage industry as a cost of doing business and they do pay commissions to said brokers on both the listing side and the buying side.
I agree with a earlier comment that you should likely consider engaging a buyers agent under a exclusive representation agreement and you likely should let them help you through this somewhat time consuming and frustrating process.
The complexities of the current banking crisis (and it really is a crisis) make Short Sales as a example a difficult and frustrating way to buy a property if you are considering that avenue. A lot internal valuation analysis has to be done for a bank to accept less than the face value of a loan and that analysis is not something that is usually done overnight. That coupled with the fact that every property that sells short or for less than booked or appraised value further erodes that instituions reserves on their books and puts them one step closer to another FDIC takeover.
So as was said by others hire a qualified buyers agent and be patient (agressive but patient)

Feb 25, 2011
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