Welcome back!

I’m sorry, But that offer just isn’t high enough for us.  We’d rather foreclose.  Sadly, I and other REALTORS have heard this far too many times.  Typically, we hear this whether or not the bank has been presented with a low-ball offer and I have personally heard this when the bank was being presented with an offer that was above market value!!  Many times the bank will just turn around after they’ve foreclosed and list the home for about $20,000 less than the offer they had!  This makes absolutely no sense, especially when you figure in the bank’s cost of foreclosure.  Is it any wonder that many buyers are leaning towards homes that are already foreclosed?  Lower price & less headache!  Hmmm….  Seems like a winning combination to me.

Lately, over the last couple of months, I have noticed a change in the trend, based on my personal experience.  I am still getting the same song and dance from some smaller banks (think Ocwen) but some of the larger ones are apparently getting the picture.  They are either countering the buyer’s offer with a reasonable number OR they are being flexible about negotiating to a number that is still a good deal for the buyer.  Logically, the sweet spot on price should be where the buyer is getting a home at a little under market value (to make up for the hassle of a short sale) but where the bank is still netting more than they would if they foreclosed.  In that case, all parties are benefited by the short sale arrangement.

As of today I am having success with both Citibank and Countrywide.  I am very happy about this because a lot of sellers who are in trouble have loans with these banks and I’m pleased to report that there is hope for them being able to successfully complete a short sale rather than foreclose.

Technorati Tags: banks, citibank, Countrywide, foreclose, foreclosure, loans, Ocwen, realtors, seller, short sale, Short sales, tucson real estate