A Question for the Banksters - Do the Investors know what you're up to?
I didn't think so ... I'll tell them for you. Dear investor ... that 900 pound gorilla that you call a respectable bank is turning away a number of qualified buyers who would like to buy the "bank owned" properties they are servicing. And one of those "bank owned" properties could very well be your investment. You are thinking ... now how could they possibly be doing that ... and why?
The Banksters assign a bank-owned property to an approved REO agent. The agent is given strict guidelines that say "Offers will not be considered without a 2nd pre-approval from ______________ (fill in the name of the Bankster here)". About half of the homes my buyer wants to see has this condition in the confidential MLS remarks, and the agents I have spoken to are adamant about it. (As they should be, if an agent doesn't follow guidelines, they will be out of the REO business, pronto).
My buyer is already pre-approved for a loan. Not only is his pre-approval from a small bank that is local to my Community, my buyer is EMPLOYED by this bank. He has NO interest in getting a 2nd pre-approval, nor should he have to. He doesn't want his credit score to get hammered by having 5 different Banksters pulling his credit report. A higher lower FICO score means a higher interest rate. Can you blame him?
So why are the Banksters doing this? Because they want a shot at stealing my client away from the bank he is already pre-approved with. They want a chance at getting a loan out of the deal AT YOUR EXPENSE. Instead of a full-price offer my client is willing to write, the Banksters will settle for a lower offer because they might be able to weasel themselves a new loan. Did you hear me? THE BANK WILL GLADLY SETTLE FOR A LOWER OFFER.
So how do you, the investor, fare in all of this? The fewer the buyers, the lower the offer. The lower the offer, the less you net. My buyer would love to submit an offer on your investment, but there is a Bankster standing in their way. And you thought the bank was servicing your investment with your best interests at heart? Believe me, there is no heart involved ... think again.
* Credit for the term Bankster gratefully goes to Carla Muss-Jacobs
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