Answer this scenario...

Posted by Christopher on September 16, 2007 at 22:38:13: Hey all,

I'm in the "study phase" of foreclosure investing. I'm sold on the
concept, and am cramming daily, soaking up all I can. This board has
been a great help.

But, I'm wondering how I can explain this to my better half more
accurately. Her question is basically this...

If I approach Joe Blow, who is in pre-foreclosure... and say, he 18K in
default on a 500K loan. I offer him 70% of the house value (provided
no major expenses).

Why does he take it?

I think I know why, but I'm curious as to how you'd answer my wife's
question. She wonders... couldn't he just stick a sign in his yard if he
wanted to sell, and take 80% of the market value instead of your 70%?
I try to explain that it's a process, and the first steps don't even involve
making an offer to buy, usually.

But, how would you answer that question, in as few words as possible?
Why wouldn't the owner just have a fire-sale for a better offer than the
(typical) 70% you'd offer in this kind of scenario?
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