Preforeclosures
I am a new investor and i just send out letters to people who are in foreclosure. with my telephone number. What should I say to them when they call me? I would like a standard format. :-?
I am a new investor and i just send out letters to people who are in foreclosure. with my telephone number. What should I say to them when they call me? I would like a standard format. :-?
Ask for the amount of the mortgage and or other liens. Don't take their word and spend some money for a title search. Set up a time for you to view the property and bring a contractor with you.
What are you trying to accomplish?
I would first ask questions to build rapport. See if you have anything in common. See if you can find a basis for a friendly conversation. Let them know you've been there before and understand the problems they may be facing. That you are not judging them.
Then ascertain motivation. "So this probably isn't a problem, because you can just sell the house, right?" or "Do you have the ability to refinance the mortgage?" or "Do you have the money to bring the loan current?" Questions to figure out whether they are motivated to cooperate--to see if they are open to your suggested solutions.
Then find out everything you can about the house--What is nice and what is not so nice. The Seller's idea of what the house is worth (not that you would ever rely on that. . .), and what repairs are necessary and how many houses have sold in the neighborhood, and how long they need to move somewhere else, and . . . How much is their monthly payment. How many payments have been missed. How much is owed. Any second mortgages, tax liens, or judgments?
Ask lots of questions and let them talk. Tell them that you would like to look at the property after you have a chance to check on a few things.
Keep a dialogue going. Even if they figure out a way to get out of the current mess, they may well end up back in need of a friendly ear.
Homeowners who face foreclosure often do so because they miscalculated; though occasionally mismanagement may be the cause.
Regardless of the cause, the foreclosure process is a stressful and drastic event for most property owners, especially homeowners.
Depression and despair are common results of foreclosure.
A fundamental key to making a profit in the foreclosure market is to understand why the property went into foreclosure.
The first thing you have to do for your customer is to help them realize, understand, and accept that no situation is hopeless.
With just a little guidance from you they can overcome this foreclosure.
These unfortunate situations create a tremendous profit potential for real estate investors.
Your Goal in making offers is:
**To establish repore with the seller
**To create an immediate decision
**To uncover the sellers real need
**Determine if there is a deal
**Get the seller to agree to major terms before you make a formal offer
Be Realistic Both sides must be satisfied!
The homeowner is probably being bombarded with letters and calls from attorneys and bill collectors and has creditors showing up at his door.
The only way to contact the homeowner is by phone, mail or in person, and chances are you will have a difficult time getting in touch with him.
Start with mailings. Indicate in your letter that you are a private investor looking for property in that part of town.
Let the property owner know that you may be able to help him with his financial problems.
Demonstrating an understanding the homeowner's dilemma will help your efforts.
Indicate in your letter that you may be able to stop the foreclosure, save his credit rating and provide cash for use in paying his bills and/or for relocating.
Be professional and gracious in your correspondence.
Invite the homeowner to call you at his convenience.
If you don't hear from him in a reasonable amount of time, say three or four weeks, follow up with another letter, perhaps worded a bit more urgently.
As you get closer to the auction date you may want to send two or more letters per month.
Follow up with phone calls if you can. Be courteous, never pushy.
I at first tell them that I will do every thing that I can to help and let them know that I need to ask a few questions:
I ask and get the following.
Customer Phone
Auction Date
1st Mortgage
Type of mortgage?
CONV, FHA, VA, Assumable, Fixed, ARM, Balloon
Payments per month w/P & I
Number pmts missed
Mortgage Pay Off $
Interest rate
Term
I go through the same process on 2nd's and 3rd's
Liens: Type of lien? IRS, State, HOA, Other and Amounts
Asking Price
How Came up with price
Has property been listed with a realtor or is it still listed
If sell what do you plan to do
If don't sell what do you plan to do
If want to stay in home
What monthly payment can afford
What down payment can afford
Have considered bankruptcy
Race
Handicap in household
How many in house hold