In the negotiation of a mortgage refinance, you can run into many different types of situations that you have to be prepared for. How we interact during a negotiation can make or break an agreement. Successful use of communication tools and preparing yourself to handle personalities will contribute to the outcome. Analyzing the Roles of Communication
In this situation the initial state of the negotiation was not moving forward in a positive direction. The bank was dealing with many customers with mortgages that were months behind due to the economic crash at the time. We were one of those affected; the construction boom took a turn for the worse and work slowed down. Although we kept in contact with our bank regarding our situation, they were not willing to negotiate new terms to our agreement. As a home owner you never want to get behind on your payments, so we continued to make partial payments. The bank continued to accept the partial payments, yet didn’t want to work with us to reassess our situation. “Discussion does not mean fighting and shouting, instead it is simply the exchange of one’s ideas, thoughts and opinions with each other. One needs to have excellent communication skills for a healthy and an effective discussion. (Role of Communication in Negotiation, 2012)” The bank acted with diplomacy and tactfulness. After speaking with realtors and obtaining consultations from acquaintances, we realized for the bank to take action, we had no choice but to stop paying the mortgage. We knew at that moment that it became a game of the bank vs. the homeowners. The way you communicate varies according the formality of the situation. (Key Aspects of Communication in Negotiation) By making partial payments, the bank was content with us. We were getting further behind, and incurring penalties towards our mortgage. Taking action did get the attention of the other party. The impact of the communication, made the bank...
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