When a bank says "Yes" to you offer

[Gil Gregg]

I live in the LA area. One of the posters here mentioned that REO investing is "heartbreaking". Boy did we find this out. Bid often and bid a lot….

After about 10 offers, a bank finally said "yes" to a property we really like.

However, the process seems very strange (unlike a regular sale). First, our offer was countered, which we then accepted the counter terms.

Then, we waited about a week for a Contract "Addendum" to come back at us. We signed off on it and quickly sent it back to the listing agent.

Four days later, we still do not have a signed contract from the bank and no Escrow company or directives to move forward on the sale.

Why is this taking so long to process? We have the Purchase Contract and the Counter Addendums signed, why do we not have them back signed by a bank representative?

My agent tells me that this is normal. She says a bank will look for an escrow company that can close within the time frame they are looking for.

Additionally, she says a bank will not usually sign a Purchase Contract until we get close to closing time. She thinks that the “Addendums are as good as a deal sealedâ€

The communication offered by the listing agent is minimal. I'm worried that this deal is going south without us even knowing about it.

Can anyone share some insight into the back-end process on REO once an offer is accepted?

You assistance and insight is much appreciated,.

Gregg