Monday, April 30, 2012

Is There a Benefit using a Third Party Negotiating Company?

I have noticed that there has been an increase by York Pa Real Estate Agents using companies to negotiate a Short Sale for them. The reasoning behind it is that the vast majority of agents don't have a clue how to negotiate a successful short sale, so use a company to do it for them. On the surface most people probably don't see a reason why not to do that. 1. it save the agent time. 2 Agent can list a short sale and think they can make a commission. 3. The agent can tell the seller he has an experienced company handling it for them.

The problem with this strategy in my opinion is that the Seller could really get damaged by this type of procedure. First of all the Seller is in a distressed situation with the home potentially going to foreclosure. The Negotiation company charges a buyer a fee that in most cases the buyer is not willing to pay. This will mean the property will get few if any showings. Secondly if an offer does come in the Negotiating company starts the process, they do not know either the Seller or the Buyer. That means they have no personal rapport with either party and with that in mind when the Lender wants a lot of information so they can make a decision on the viability of the short sale the effort on the Negotiating company is less than satisfactory. The success ratio of such a company must be much less than what a Certified Distressed Property Expert will be able to offer. What is really troubling is that when an Real Estate Agent uses this type of company basically because they don't know what they are doing in regards to short sales, but they think they will get a commission paid to them if it is successful. Unfortunately this practice ultimately pushes the Seller into foreclosure. No one wins when that happens.

If you live in York, PA and in are facing foreclosure, please consider a Short Sale and put your situation in the hands of an experienced team The Pilgrim Team of Professional Realty Associates and be confident you made the right financial choice.

Startegic Foreclosures Good or Bad?

Recently there has been some talk about "strategic foreclosures". Unfortunately there have been some individuals promoting to people who are in financial distress and don't know where to turn when they have fallen behind in their mortgage payments. They have taken the stand that it is O.K. to just walk away and never look behind them for the consequences that come with such a move.

Just last week Good Morning America had a special about walking away from your commitment. The analogy they used was that if it is good enough for corporate America to do so, it is O.K. for the average homeowner too. It was totally irresponsible reporting and they should be taken to task to promote such a terrible injustice to the public. They did not mention what consequences there are to individuals who actually must work and maintain households, credit ratings and personal reputations if they allow a foreclosure to happen. Obviously they did not realize or even care that with that type of reporting people could be jeopardizing their financial futures including holding on to the job they currently have or a job in the future. Corporations don't have to think about those things as it not part of the business world. So yes, corporations do that sometimes but with different consequences.

Please don't consider a Strategic Foreclosure as you might not be happy what you may end up with. Call me today for a confidential interview and we can set the record straight and get you on the right financial path.