Homeowner Facing Foreclosure...what Do I Say?
what do you say on a first contact to a homeowner facing foreclosure?
Do you call? or stop by?
Do I try to get info? How do I find out his level of motivation?
I'm looking for sentences to use? I can handle the sales part of it...just need to know the questions to ask, and the info i need to get.
Thanks
OCS:
I have a post under Pre-Foreclosure/Foreclosures Forum entitled:
Preforeclosure SCRIPTS Ypou Should Use...
I also have a few TIPS for WHAT BEGINNERS Should Say right here:
What A Foreclosure Investment IS and ISN'T???
WHAT IT IS:
RELATIONSHIPS!
RELATIONSHIPS!!
RELATIONSHIPS!!!
Build Them...when I began focusing almost exclusively on PFLs I had no limit of time put on dealing with distressed homeowners...
I truly have a giving nature and felt obligated to always jump at the request of the homeowners & lenders I negotiated with for them.
Now I segment my time on Sat/Sun I review the upcoming week's list of PFLs (Online) then highlight only the ones within my target Mkt.($175K and UP)
Then MON through WED I handle one Visit to the property and/or arrange an Appointment with the owner.
Once I contact the distressed owners on my list ...THIS IS WHERE THE RELATIONSHIP BEGINS.
At the first Appointment I explain the TWO (2) things I CAN HELP THEM DO...
prefaced with the sentence -
"I Don't Know If It's TOO LATE ALREADY To Do ANYTHING but..."
Then I go into my Consulting/Listening mode and offer them FREE HELP to negotiate with their lender(s)
and my SECOND HAT I wear is that of the PURE UN-ADULTERATED PFL RE INVESTOR!!!
"IF the lender cannot (Will Not) assist you in keeping your home then I CAN BUY YOUR HOME THIS WEEK to GET YOU A FRESH START and KEEP YOUR CREDIT EQUITY and DIGNITY intact!!!"
There are the several ways to buy PFLs and Foreclosures---Example:
-Buying at a Sheriff's (or Trustee's) Sale by offering the successful bid price
-Buying from an REO (Real Estate Owned by the Bank bought back after the Trustee Sale)
-Buying from an Owner in pre-Foreclosure stages before the Sheriff's Sale (Can include Short Sales)
What Foreclosure Investing ISN'T
-Buying from Owners or Banks at pen ni e on the Dollar using ZERO CASH or CREDIT...
-Paying up the arrears of an owner, grabbing their Equity and then RE-SELLING the home back to them at or above the MKTat high interests rates.
-Working for FREE on behalf of PFL Owners before you have an agreement to buy or be compensated forthe work/results you acheive for them.
-Contracting to buy properties before investigating/researching the title for liens, judgments, etc.
-Getting the deed for $10 and then recording your name on the title without protection to your other personal/ professional assets.
-Buying properties to resell (either wholesale to anotherinvestor or retail to buyers) without understanding the mkt...
a.) time on mkt it takes to resell, and
b.) having ample FUNDING options(investor, financiers, partners, buyers, etc.) as opposed to FINANCING(banks, loan co.s, hardmoney, etc.)
-Lack of FOCUS!!!! (Not being selective enough to work ONLY on those deals with the most promising returns!
My Personal FOCUS currently includes:
a.) ReSELLING (Avg.Minimum Return of 10% of Value or $4K upfront)
b.) Keep for RENTAL (15% Equity before repairs/Mkt Rental minimum at 15% of Value)
c.) $175K and UP property value (TOM/Time On Mkt in my area is currently 40 Days for these)
d.) RELATIONSHIPS!!! Build Them, I have no limit of Brokers, REIs, Loan Pros and ATTYS with whom I NETWORK but I only have so much time which I DEVOTE to EDUCATING and SUPPORTING and REFERRING these people the DEALS I DON'T or CAN'T DEAL WITH!!!---It's a NICE way to Make FRIENDS and CREATES BONDS---the kinds that come ATTACHMENT FREE and puts a smile on your face.
Sorry it got kinda Long...
Hope it Helps!
Derrick Ali
Fabulous post Derrik, I agree with everything you say here, wonderful advice, even the vets could learn something here.
Don
Great post, thanks for taking the time.
Well this is wonderful advice and I can utilize it when prudent. However, I receive hundreds of request for help to prevent the foreclosures. I normally will have my staff assess for eligibility and if they qualify I'll help them resolve the delinquency (for a fee - no upfront) and I'm 100% successful. However, for those who do not qualify to remain in the property due to many financial reasons we will work with investors to attempt a pre-foreclosure sale or short sale. Many investors have discovered my approach an acceptable avenue due to the true concern I have for their need to relief anxiety (fear of foreclosure). If I approach them caring (I truely do) then it is easier to help them understand that they may not qualify to remain in the home and they normally will convert to a potential deal alot easier. However, many that don't still earn me approximately $1000 to $1500 up in fees if eligible. Just my thoughts and experience. Thanks.
ScHSch is K-REKT!!!
His form of CMLA (Consumer Mortgage Loan Adocacy) is my own EXACT Method of ASSIST (read: HeLP) B4 INVEST.
THe more people recognize your support for them and their recognition of the REAL PROBLEM at hand...the more TRUST built by YOU when decision time comes for disposing of the property...
Bottomline whose opinion are they gonna trust? The in your face lowball equity grabbers or YOU the caring/considerate individual whom CONSULTED (LISTENED TO) them and HeLPed them to SEE CLEARLY the SOLUTION to their Problems???
Take your time with PFL Owners and EDUCATE them on the Facts.
Let them know about their Options and the Assistance/Support you can give them by negotiating with their banks to either arrange a re-payment plan or pre-foreclosure sale if they CANNOT AFFORD To KEEP their home.
STAN, I ADMIRE and RESPECT you for Your Program...(www.SchultzandSchultz.com)
Although I am NOT affiliated with his service it MIRRORS EXACTLY what my own CMLA (Consumer Mortgage Loan Advocacy) network represents.
Homeowner Loss-Prevention!
STAN: Lets talk more about networking and the above concepts!
Make it a GREAT Day Everyone!
Derrick Ali