Replies to This Discussion

Permalink Reply by Maya Thomas on May 27, 2011 at 8:52am

Did you submit an offer?  The seller needs to sign the offer so that you have a contract before it can be submitted to the bank.

 

Neither the buyers agent or the listing agent orders the BPO.  The bank orders the BPO.

 

If the seller has not signed your offer your offer has been rejected if the time for acceptance has passed.

 

Equator doesn't give weekly updates.  There are time frames for certain tasks to be completed.  If the tasks are not completed on time the file can be closed. 

 

Talk to your buyers agent.  Communication is key.

 

The sale is most likely to be approved if the offer is market rate or close to market rate.  If the home is priced appropriately an offer that is below market may not be approved.  Many listing agents (including me) advise a seller to wait for an offer that will be approved.  $20,000 off of the list price of a $120,000 property may be significant.  $20,000 off the list price of a 2.3 million dollar property is probably not significant.

Permalink Reply by Mike Gowan on May 27, 2011 at 10:10am

Thanks Maya.  We did submit an offer.

 

I just talked with the seller's agent.  She says GMAC is using a third party to negotiate (Kazork) instead of Equator - they accept offers online directly from the buyer's agent, offers must be at asking price or better to be considered (asking price is apparently already below the existing BPOs), and do not require a signed purchase agreement.  In fact, they DON'T want one signed - since it is an "open biddng" process for a period of time (1-2 weeks) after the first offer is submitted and they don't want the seller tied to a buyer in case they get a better offer during that time frame.

 

Obviously this is different than the normal procedure, but i guess the benefit is you get an answer within 15 days after the open bidding period.  Still think we should get something in writing.  Confusing to say the least.

Permalink Reply by Maya Thomas on May 27, 2011 at 4:02pm

Hi Mike,

I'm so happy you are more comfortable about what is going on.

 

Ahhhh, Kazork.  That explains everything. 

 

This may or may not make you feel any better, but if you wrote an offer on many bank owned properties you could be waiting 7 to 13 days before you could submit your offer depending upon whether it was going to be your primary residence (7 days) or an investment property (13 days).  Then you might wait a week or more if there were multiple offers and would not receive anything in writing. 

 

I had a buyer write an offer for a home that had 3 calls for highest and best and a total of 35 offers before 1 offer was accepted.  It took 30 days before the bank stopped taking offers.  It was another week and a half before the bank accepted an offer VERBALLY.  The bank addendum and contract came back signed from the asset manager at the bank a week after the verbal acceptance.  60 days from the day my buyer wrote his offer the property was changed to a pending contract in the MLS.

 

I have never had any bank provide any paper work of any kind until the offer had been accepted and the bank addendum was signed by the buyer. 

 

If it is a lovely property at a wonderful price it can be a lengthy process. 

 

Good luck!
Maya