ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Sneaky Little Bankers' Secret

Updated on September 9, 2013


Bankers have a secret that they don't want you to know. It's something that they kept to themselves well before this whole real estate mess. But now, they really would love for you not to get your hands on this secret. Too bad for them, I'm spilling the beans.

How Bankers Make Money

Bankers make their money by lending out to others and then taking on what's known as a spread to the interest rate.  The spread is how they make their money.  That's why with interest rates they keep upping the ante on the rates (some as high as 25 to 30 percent).  Credit cards are one of the most risky loans because they are unsecured (not backed by any kind of collateral) and when people lose their jobs they tend to use the credit card for living expenses and thus maxes out the amount of credit allocated.  But this is not the secret I am talking about.  This is just a bit of background on the banking industry.

So What's The Secret?

The secret has to do with foreclosures in the real estate market. You see, bankers would love not to tell you that they have any listings because they would like to sell you those listings (or to the market) at the standard market rates. Once you know that they have a whole bunch of foreclosures, you suddenly have a whole lot of bargaining power. It's a slippery slope with them because the longer they hold onto these toxic assets, the more they have to pay. Banks don't like to have too many assets (a loan to a bank is an asset) on their books.

Ask For Foreclosure List

So next time you are visiting your banker, ask them if you can see their foreclosure listings.  Watch their faces grimace when you ask that too.  It's kind of fun.  But the unfortunate side effect of all this is that you are going to have to go through pages upon pages to find anything that may be appropriate for you to look at. 

Or, Use a Listing Service

Another alternative, and the one that I would highly recommend, is to use a service that lists foreclosures. Sure, they charge a fee for that service but the amount of money you are going to save when buying a foreclosed property is pretty substantial. It will well make up for any fee that you may pay. At the bottom of this article, I'll give you a link to a service that is offering free use of their listings for seven days. That may be all the time you need to find the listing - especially since the web site does all the searching for you based on criteria you give it.


Now you may be wondering if you should be buying real estate at all given all this whole real estate mess that we are in. I cannot say with confidence whether or not we've seen the bottom in the real estate market. But what I will say is that by the time we realize any market has bottom is typically when it's too late. You may very well think back a couple of years from now and say, why didn't I buy real estate back when the prices were low? The point is you cannot know when the bottom is and since foreclosure properties are offering major discounts to market prices, why not step in and give the banker a run for his/her money?

Why not forget about all this banking nonsense and learn how to really make some serious cash? Get Paid Boot Camp can help you with a totally free course on how to make money using the internet. It is one course that you don't want to miss and you've got nothing to lose because it's FREE.


Submit a Comment

No comments yet.