Hello BP Community,
I've been stumped on a question asked to me by my friend. "When a seller still owes money to the bank, What kind of seller is more likely to sell their house? Seller A-someone who owns 75% of the equity and is behind on their payments and really wants to move. Seller B- someone who owns 50% equity, isn't behind on their payments but really wants to move. Seller C- Someone who owns 25% of their equity, is behind on payments but doesn't want to move."
I know it sounds like a classroom question but I just dont know how to answer that haha.
In my opinion, Seller A as they have the largest amount of equity to loose. If you can get it before it goes into foreclosure all the better for a short sale! (Buyer and Lender save money) Seller C may not want to move, however if they go into foreclosure they wont have a choice! If your buying locally its a good idea to build a relationship with lenders in your area. One thing about any property your considering is to check on their tax status so you do not run into an expense that was not planned for.
The answer is D people are weird. A might think there 75% is worth 125% and won't settle, B will agree on a price but won't move because they can't find the perfect house and C Might just sit there on there happy butt until foreclosure just because.
They all have reasons to be motivated in some way.
Since there is no standard reference for what motivates people, it is impossible to say who would be more motivated.
Pursue them all as the one that responds to you is the one that is motivated enough to take action.
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