Owner Doesn't Want To Sell
Facts:
Mortgage Lien: $160,000
Mortgage in arrear: $9,000
Appraised Value: $400,000
The owner does not want to sell, but called me to see if I can assist him in any way. What are some of the options that could be presented to the homeowner? What type of service can I provide?
Any creative ideas for this one?
You need to have a talk with him and listen and learn what HE wants from you-or anybody.
Then you might figure some game plan that would work for both of you.
But until you know what he wants, how could you possibly help him?
Well, with this LTV you can do anything you want but the real question is - what does he need and what is the problem? If you don't know what the homeowners needs and motives are you can be shooting your cannon without ever hitting the tower...
Find out things like: Was this a temporary financial difficulty or something that will no longer allow him to afford the house? If he took out a second loan or do a work out plan with the lender, would he be able to afford higher mortgage payments? Is he planning to sell in the future... and so on.
Ask questions that will lead both of you towards the big picture. If you structure your questions right, you won't even have to tell him what to do, he'll tell you what he wants from you. Good luck on this one. Its a good deal, don't lose it!
[ Edited by narasland on Date 01/06/2004 ]
I spoke to him and he said that he wants to remain in the home with his family. He stressed that "selling is not an option."
Am I wasting my time with this lead?
In most cases this is the initial reaction my friend. Denial is their buddy. Anxiety is what they eat for dinner and stress is what they bring with them to bed. This is a nasty situation to be in. You just have to approach them right. In this business you have to wear a lot of hats, and those include the one of a psychologist, another of a financial consultant, third of their foreclosure problem solver. You are never really wasting “your” time with them, unless you’re a pro. Even if the deal is not going to go through, practice, practice, and practice so you know how to handle this in the future when opportunity falls in your hands again.
Some investors are in the business to help homeowners KEEP their homes. They service them by trying to negiotate with the lenders on their behalf. They charge a fee though. I believe it's $500-$700.
Another idea is to lend these people money....good or bad idea? If so, what interest would you charge and how would you structure the payback plan?