We are seeing some great deals on bank owned properties right now. FHA is a great way to go on these loans and 1st time buyers are coming out of the woodwork to buy these homes. Most have good income and credit, and are buying a home that is less than they could afford if they really wanted to max out their qualifying ratios. All great.
Here's the problem I'm running into, as a Loan Officer. The bank's who are selling these properties are very difficult to communicate with, and the listing agents are overwhelmed by the number of listings they are handling. If anything is needed from the seller (signed Grant Deed, counter offer, etc), it could take 30 days or more to get a response. I've got a deal right now where the borrower signed loan docs 2 weeks ago. They really wanted to close prior to Memorial Day weekend. All that is needed to fund is a signed Grant Deed from the selling bank. We have heard absolutely nothing, and have been told to not even try because it won't help. The buyer is actually considering cancelling escrow if the seller doesn't respond within the next 10 days, plus we will have to redraw doc's if it doesn't close by June 6. Crazy stuff. You would think once a property is in escrow, and then ready to close, the seller would be ready to get the property off the books.
Although we can close an FHA loan in 30 days or less, we're going to start locking the rate of these for 60 days just to accomodate the seller's on these deals.
But then again, there are great deals out there, and the number of qualified buyers is a great sign.