Posted by Joe Kaiser on August 24, 2003 at 24:31:37:
By and large, banks aren’t stupid. Appraisers aren’t stupid either.
You’d need them both to be stupid, at the same time, to make
this work for you.
A bank is going to minimize their losses and even have people
who’s sole job is to do just that. Do you really think agreeing to
terms that do not minimize their losses is something they’re likely
to do, no matter how cleverly you set things up?
I’m sure it happens occasionally . . . so don’t get me wrong. But I
don’t believe it happens often enough to be able to make a career
out of it.
Besides, I have no patience for this type of investing. I don’t want
to wait for months in search of a yes or a no from the lender. I
don’t want to play the game of trying to con the appraiser into
valuing the thing at an amount that allows me to make a profit.
Sure, lenders want to avoid the repo headaches . . . but they aren’t
willing to give away the bank to do so.