Who is REALLY the client?

When I speak to homeowners who are in distress, a lot of them tell me they don’t understand why the banks are so hard to deal with.. Why to they treat their clients so bad?

Think of it this way. If you were running a business that focused on lending people money assuming you weren’t sing your own capital, you would have 2 types of people or entities to deal with. First entity would be the clients that you lend money to and the second entity would be the clients who invest their money in you to lend to the other clients. If you were forced, (I am not saying banks are…) who would you make sure is more happy at the end of the day?

The real clients to the banks are the investors of the notes. At the end of the day, the banks are most likely concerned with how much they can net their investors. For example – if we have a short sale offer into the bank at $474,500 and the bank thinks that through foreclosure they can get $542,500 it is, a lot of times, in their best interest to net the investor the most amount of money so they will elect to go to foreclosure.

Now does this happen all the time, no. Do sometimes, the banks feel they can get more and that ends up not happening? Yes, all the time. Just like it always has been, real estate is a calculated gamble. Historically real estate has always netted monetary gains, but lately it doesn’t seem so.

That being sad, it is crucial that if you decide to short sale, that your agent REALLY does attempt to get the most amount of money for your home. As time goes by, banks are getting more and more savvy on how to evaluate properties. A short sale does not make sense every time for them!

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Steve Olson is a REALTOR specializing in short sales and equity sales in the East Valley including Tempe, Chandler, Mesa, Gilbert, and Gold Canyon. If you or anyone you know is behind on their payments, please call Steve today at 480 382 9101 for a private, confidential meeting.