patrick.net

klarek says

That’s my issue with it. Great, take advantage of the system, but at the cost to whom? Other buyers. The fact is that these investor flippers can buy with lower bids says how very wrong the system is.
tatupu70 says
The investor is assuming the risk for the bank.
If they bought it at $80k under “market value”, excluding defects, what are the chances they’re inheriting any real risks?

Essentially you are saying that the banks are stupid and don't properly understand the risk of these loans not closing. Judging by their past performance, it's hard to argue with you.

It's not the systems fault though--it's just the seller's fault. The seller is leaving money on the table. Robert is right... Finally, if you are crying because you can't get a below market deal--shut up and save the money yourself! There is nothing stopping you from putting in an all cash offer...

tatupu70 says

It’s not the systems fault though–it’s just the seller’s fault. The seller is leaving money on the table. Robert is right… Finally, if you are crying because you can’t get a below market deal–shut up and save the money yourself! There is nothing stopping you from putting in an all cash offer…

Don't disagree at all. If one is to whine that it isn't "fair", they're not wrong, but the answer is of course to come to the table with more money. Just pointing out that the way this kind of system repeats itself, it sort of compounds this problem to where the only people who are compounding their available capital are the flippers.

I'm just looking at it as an economic inefficiency and why flippers don't deserve any sympathy.

klarek says

I’m just looking at it as an economic inefficiency and why flippers don’t deserve any sympathy

I agree too--I would definitely not have any sympathy for flippers...