Made an offer, Bank Owned

[Teasha]

So... The time has come! We've spent the last six months working on DH's credit and looking at properties we couldn't really have until we received a pre-approval letter and watch houses come and go. Recently there has been very few properties that we had any desire for and was feeling un-motivated.
On Thursday I found a property that just went on the market on Wednesday that fired me up again and we decided to swing by just to check it out and assess the neighborhood. We loved it! Friday I scrambled to put all the docs together and submit for a pre-approval, which we achieved and had the approval letter submitted that night with an offer. Phew! 24hrs from looking to offer submitted.
Not sure what's next and really trying to stay calm but we really want this house. The offer has a closing date of 4/20/13. Is it possible to have a bank owned go through that quick? That's 14 days from offer!
We may be one of the first to offer on the property and if we'd waited it would be gone by next week. I'm pretty nervous and don't know what time frame to expect, before we receive a decision.

83 views and no knowledge.....am so glad I have something for people to read. Next time I might be graced with a response to one of my question. I guess I'll find out when I contact my agent on Monday

[Teasha]

Anyone? I'd really like to know what the approximate decision time is for a FHA bank owned once an offer is in? Days, weeks, months? This house is in lake County Florida

[JM-AM]

The reason why no response, is you really can not give one.

Bank owned properties are at the mercy of the Bank for accepting your offer.

I have seen Bank owned properties take months before they accept or deny an offer.

On the other hand I have seen them come back with in a short period of time also.

YMMV

[Booner72]

We bought a bank owned through Fannie Mae Homepath. Everything was ready to go on the lending side, so we were able to close within 30 days of putting in the offer, that time included going back and forth about week negotiating the final sale price. But that was 2010 and I hear it's busier these days out in the homebuying world. Know that if you do put a 30 day close in the offer, and you don't, you have to pay the bank a daily fee, like 100 bucks a day or something. Good Luck.

[brownj12]

YMMV but it is possible to close that fast but there is certainly no guarantee.

I am buying a Fannie Mae owned home, if I had gone FHA we would have closed last week (4 weeks after offer was accepted), because we went USDA we are waiting for their approval.

Our time line, Offer made 3/4, They countered 3/5, we countered back 3/5, they responded 3/6 and we accepted, contract was finalized 3/8. Inspections done 3/12, Appraisal done 3/15. If we didn't have any problems with the appraisal we could have closed the following week.

FHA appraisal isn't always an easy thing, even if the house appraises above sale price there are other requirements for safety and such. Getting the bank to fix this kind of thing can be a pain. For example in our house the pluming was winterized. Because the toilets were drained the seal on the ballcock dried out and it ran continuously. While this would have taken a home owner 10 minutes, $10 and a trip to Wal-mart, it is a bit more of an effort for a bank to get it done.

[In-A-Limbo]

We made an offer on a Fannie Mae house a while back. Fannie Mae get to make up all the rules including the closing date. They told us that we have 20 days to close but it took them weeks to get the water back on because they owe money to the city. We couldn't do our inspection within the 7 days window. There were other issues (all caused by the bank) and in the end we just walked away and got our earnest money bank.

[Teasha]

Thank you for your feedback! I had the weekend to wait through and still haven't had word. We have a response date for seller response for Wednesday 4/10/13.
We offered full asking price, seller pays closing. Am sure they'll wait it out till there are more offers (ours was the only one Saturday)

If they come back with multiple offers and a highest bid, will consider 3-4% more. We really want the house!

[In-A-Limbo]

So did they accepted your offer? We got our accepted within 1 week with Fannie Mae and 24 hours will a regular seller.

[boomhower]

It's possible but extremely unlikely.  Making a big assumption that the bank the owns the property plays ball can your lender get the loan finalized that quick?  Inspections, appraisals, and title paperwork can hold things up making that tight time frame difficult.  Even for a cash deal that's a tight time frame. 

[igids1]

Sorry to be the bearer of bad news, but that closing date is next to impossible. I think you will be fortunate if you have an accepted offer (by the bank) by that date.