Straw Offers Merely Make Additional Work For Everyone.
If you recall last week, Kevin and Fred chatted about Matt Vernon, the executive at lender of America who came to Arizona last week. Mr. Vernon spoke to more than a thousand real estate experts openly regarding deficiencies at lender of America.
One of the things that Mr. Vernon chatted about was the ‘straw’ offers that clog up the system. Basically , a straw bid is an offer that is so unreasonable that the offer will not get approved. Kevin and Fred believe that you ought to not send an offer to the lender that you do not think will get approved. The straw bid only hurts this progression. You’re giving yourself more work, the bank more work and you are slowing down the practice for any person that has a short sale listing in the system.
One of the scariest things is that there are short sale training courses out there that teach this as a common practice. Essentially, the agent will take a listing and put in writing their own investor bid for an unreasonable amount so that they can get the short sale process started. In the mean time they can get a negotiator assigned and get a BPO prepared. All the while, the agent is hopeful to find a real buyer and change out the real buyer with the fake buyer.
However, if you get a BPO completed, the BPO value may not be relevant when you finally get a valid buyer. At the end of the day, you are hurting the entire community and the value that you assume you have in this straw bid process only works out one in ten times. You are not helping yourself by utilizing the straw bid process. On behalf of other real estate specialists and banks across the nation please end this process!
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
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