Negotiation Situation Essay

In the talks of a mortgage refinance, you can run into many different types of situations that you have to be prepared for. How we act during a talks can charter or break an agreement. Successful use of communication tools and preparing yourself to worry personalities will contribute to the outcome.Analyzing the economic consumptions of CommunicationIn this situation the initial state of the negotiation was not go in the lead in a positive direction. The depone was dealing with many customers with mortgages that were months behind due to the sparing crash at the time. We were ane of those affected the construction boom took a turn for the worse and bet slowed down. Although we kept in contact with our bank regarding our situation, they were not instinctive to negotiate new terms to our agreement. As a home owner you n forever want to get behind on your payments, so we act to make partial payments. The bank continued to accept the partial payments, yet didnt want to sca t with us to reassess our situation. Discussion does not mean fighting and shouting, instead it is simply the exchange of ones ideas, thoughts and opinions with each other. One chooses to have excellent communication skills for a healthy and an efficient 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 mood you communicate varies according the formality of the situation. ( recognize Aspects of Communication in Negotiation) By making partial payments, the bank was study 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, do the bank realize they needed to have more meaningful conversations with us. We finally were able to alter their perceptions and expectations concerning the situation, kindred and outcome.Through many discussions with the bank, we came to an agreement to attempt to sell the house this course to avoid foreclosure and or a short-sale. The mortgage payments were frozen during this period. We knew we were treading water, since the housing market was at a virtual themestill. After exhausting conversations with the bank, we were at the point where we were going to have to walk away from the house. Our emotions at this point, were wearing thin.This process was taking months, and in like manner taking its toll on our patience with the bank. We wanted to be responsible for our decisions, but we were being coerce to make a decision that would hurt our credibility for the future. Our sincerity was our most important personality traits exhibited in this negotiation. We had to show our sincerity for an effective negotiation. W e never took the situation casually. In the eleventh hour of negotiations, the bank was willing to refinance with a co-signer. Luckily, our relatives were willing to assist, and were kind enough to co-sign. The bank was very cooperative and we were moving forward in a positive way.Analyzing PersonalityFailures and distortions in perception, cognition, and communication are the paramount contributors to breakdowns and failures in negotiation (LewickiSaundersBarry, 2005). Negotiators use information to challenge the other partys position or desired outcomes or to undermine the effectiveness of the others negotiating arguments. Even in the simplest negotiation, the parties take a position and then(prenominal) present arguments and facts to support that position. As the homeowners, we argued to gain terms that were within our devote to be able to give way the home and avoid a foreclosure. The bank had a different set of terms, that would stretch our ability to make ends meet, and we had to stand firm with our decision to adhere to our end goal. For us, our personality in this situation varied.At generation we were very cooperative, as was the bank. But at times, the bank exhibited an aggressive behavior, and made us think we only if had one option to explore. The bank exhibited a power position, to intimidate and instill fear. As homeowners, we were emotionally attached to the home. We knew that we had to remove our emotions, and treat this as a business deal. That was difficult. We were able to neutralize our emotions, and handle the situation in the most professional way. Personalities in such a high-stake situation can get intense. We viewed the bank as goliath and us as David. The bank was responsive, but we found when we got upset and put them under pressure, the bank became uncomfortable and worried about damaging the relationship with us as the customer.Contributions of those Roles to the OutcomeOur ability to stand our ground and be vigilant with our information upfront, aided our ability to work with the bank to come to an agreement. To reach this agreement a third party did have to enter the discussions. This third party assisted both sides in reaching a final agreement. The process was a roller coaster it was also a teaching experience for both sides. In the end, we were happy with the final terms. The bank did make some small mistakes end-to-end the whole process, and due to their mistakes being presenting in writing, had to honor those terms in the paperwork. We were able to avoid a 5-year ARM agreement, and were able to secure a 30 year fixed mortgage at a very low rate, due to their mismanagement of information.The point is to never quit with a bank. As pertinacious as they keep coming back with counter offers, you do the same. At some point, youll make a deal, and it might be better than you ever expected. Looking back, it is very important to remove your personal emotions from the negotiations. Emotions need to be u nder control on both sides to achieve a successful end. If you have ever felt like you were stuck in a burning high rise with only one way out at times, we know that if you work with the right people, your chances of success increase with every option you have.BibliographyKey Aspects of Communication in Negotiation. (n.d.). Retrieved from http//oregonstate.edu/instruct/comm440-540/commfactors.htm (2005). How to Improve Communication in Negotiation. In LewickiSaundersBarry, Negotiation, Fifth Edition (p. 175). The McGrawHill. Role of Communication in Negotiation. (2012). Retrieved January 19, 2013, from Management Study Guide Pave your way to Success http//www.managementstudyguide.com/role-of-communication-in-negotiation.htm