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“Look’n for Love in all the wrong places Part #1″
By Capt. Krusty | May 15, 2008
With all the press and hype on the market tanking…and the foreclosures…and the short sales, everyone’s looking for the perfect bargin.
Some how in all the media confusion, word has gotten out that “Short sale” will get you your dream home at a really great price…but after eleven months of watching every conceivable bidding tactic imaginable , I’ve come to the conclusion that winning in a short sale is pure “roll of the dice” luck for the buyer.
Smart money is on the foreclousure! WHY?
Let’s look at the psychology of Short sale vs Foreclousure from the banks point of view. 1.) In anticipating a short sale, the bank has not lost anything YET , and wants to lose as little as possible. 2.) No employee of the bank wants to be the one to make the decision to lose that asset. 3.) It’s easier to say “No” then to say “Yes”. Those who say “no” are not wrong….just cautious. Those who say “Yes” are exposed, and if something goes wrong…may be the subject of blame.No one wants to be wrong on the corpoate ladder,therefore getting a quick decision from a bank is unlikley. Another little twist is …somewhere in the bank is a room full of people that have only one mission in life…try and extract as much of the mortgage payments out of the the short sale client as possible AND try to talk you into keeping the property. YES they will contact you directly and try to get you to keep paying…anything, any amount…and their good at it.
On the foreclosure…decision has been made, the money has been lost…now you’ve got a depleated asset to deal with. At first, the holder of the asset will try to recapture as much money as possible by setting the price as close to fair market as fits the condition of the asset. As time goes on, they loosen their grip a little (realizing “time-is-also-money”), so lets get this sucker off the books! This is what’s called the “sweet spot” and usually occures around 60-90 days into the listing(our area), however this really varies with where you live and average D.O.M. for your MLS. When the chemistry is correct, and the planets are aligned…the decision will come quick.
Next time : Getting the bank to look at your offer .
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