Profile picture for user0013518

Bank not responding to REO highest and best offer

I placed a bid on an REO owned by PNC bank.  There were over 10 offers.  They did a 24 hour call for highest and best, I increased my offer some, and the next day I was told they accepted another offer.  The listing then was changed to  "contingent-other".  Last week my agent called and was notified the bank was taking new offers. Apparently that sale did not work out.  I made another offer (slightly higher) within the 24 hour time frame specified.  The next day they did a multiple offer-call for highest and best due in 24 hours.  I did not raise again, but my offer is in there and has been for 6 days.  
On the first go round, the bank chose an offer within 24 hours.  It has now been 3 business days since the last highest and best deadline.   NO word.  The offers had to be submitted to a third party website and the listing agent has not returned my agents calls.  
I am concerned that I may be missing another opportunity while I wait this out, I am in a really hot market segment.  However, this is the home I really want.
I am a cash buyer and plan on living in the home.  Any advice on what to do next?  How long should I expect to wait?

  • October 16 2012 - US
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Answers (6)

Profile picture for user0013518
Well, good news, I think.
My agent let me know today that my offer has been approved, just pending the investor's approval.  Apparently PNC is the servicer.  They have already started and said it should only take 24-48 hours.  I'll believe it when I see it.
The only contingency on my offer the entire time was an inspection within 4 days, not asking for any work to be done and a close within 2 weeks. 
I feel pretty good about the deal, my offer this last time only went up a tiny bit, so I don't think I left too much money on the table.
Wish me luck.
  • October 16 2012
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I think you may miss PNC's version of "Highest and BEST" offer.  If you bid the highest price for the property, but had many contingencies, this may turn off PNC Bank.

A bank usually wants the smoothest transition possible, so this means certain things may be very important to them, like:
1) short close of escrow and to remove contingencies (try 15 days OR LESS)
2) No escrow contingencies, based on needing time to sell other house (no bank will accept this)
3) requesting an addendum that will allow you access to something that takes time/effort/money (ex: I had a client that bought a bankrupt piece of property. He wanted to add an exception, allowing him access to a pond on next-door property that previous owner had because he owned both properties at the time-the bank refused to consider our offer until the exception was removed).

I do not think the bank is having difficulty with the amount that is offered, it seems that the bank is having difficulty with the possible contingencies you put on your offer.

I wish you the best of luck finding a home!
  • October 16 2012
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You can move onto other offers on new properties while you wait.  You may also have better luck contacting the office manager/Broker or another team member for status. Sometimes, the bank Many REO listing agents are too inandated with multiple offers to return each call. It is unfortunate, but it's the climate we are in with todays market.  Have your agent keep an eye on the status of the REO you offered on and if it changes again to Contingent or Pending, then you have your answer.  If you  by chance end up with more than one accepted offer, you can withdraw.
  • October 16 2012
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It does become more complicated when there are multiple offers.

My guess is the 1st offer met the metrics established by the asset manager / bank but the next set of offers didn't match the numbers / terms necessary for a quick response.

And if the bank is acting as the representative for an investor, they would have to go back to the investor with the most recent offer(s). Foreclosures work best when there aren't multiple offers and when there are fewer layers to go through to get a response.
  • October 16 2012
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Profile picture for craigfial
2 things could be happening.  Sellers agent has a buyer they are trying to get in the deal, or the asset manager for the bank is playing games.  It happens all the time and your agent just needs to be persistant.
This is where solid industry relationships come in handy.
I know most of the REO agents in my area and they are generally pretty good, but with banks giving out properties to more and more uneducated agents, there are more and more problems.

You are right by staying where you are with your offer.  Don't play their game.  Make your offer and tell them you are ready willing and able to close, take it or leave it.

Lastly, don't wait around for an answer.  If something else comes up for sale that you are interested in, make more offers.  You can make as many ofers as you want, as long as you withdraw the others if one is accepted. 

Generally I put in a 24 hour response and banks NEVER respond in 24 hours so your offer is basically void.  You have no obligation to accept their counter offer.

Good luck!
  • October 16 2012
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Profile picture for user054225
I am in a similar position.

I made an offer on an REO property. Six offers in total were made. Highest and best bid was due on Oct. 10 and all online listings reflect contingency, but my agent has not informed me if my offer was accepted or someone else's.

I thought that short sales were not as big of a hassle as REO/foreclosures, but that's not the case, sadly. I hope you hear something soon.
  • October 16 2012
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