Contacting owners in preforeclosure - Posted by Keith

Posted by ScottE on May 22, 2000 at 23:46:58:


Contacting owners in preforeclosure - Posted by Keith

Posted by Keith on May 21, 2000 at 21:33:23:

Hello All,

Being a relative ‘newbie’, I’d really appreciate some help from the more experienced investors here. BTW, this site is a great resource - I’ve read the ‘how to’ articles, I’ve also purchased Kaiser’s foreclosure course. OK. I have a list of owners in preforeclosure that I obtained. The question I have, is regarding contacting these people. Kaiser mentions several methods, not the least of which is just going right up and knocking on their front door. Given the fact that the time window here in Texas is very short, what have any others found to be the best method of contacting these people? Quite frankly, I’ve knocked on a couple of doors and have already had my life threatened once. This is not what I would consider a ‘win-win’ situation for both parties. I don’t want to be perceived as a ‘bottom feeder’ who is attempting to prey on individuals in a desperate situation - I genuinely would like to help out these people and get paid modestly for my efforts.
How are any others handling this?

thanks in advance for your responses, and thanks also for creating a great forum for learning and sharing.


What records gave you the pre-foreclosures? (nt) - Posted by SteveA (FL)

Posted by SteveA (FL) on May 22, 2000 at 11:20:35:


Re: Contacting owners in preforeclosure - Posted by BR

Posted by BR on May 22, 2000 at 08:42:31:

Keith, each market is different ie. what works in my state may not be the best approach in yours. Joe has some good techniques in his course. It is up to you to figure which ones work (by trial and error)in Texas as your state foreclosure laws may be significantly different. I have found that researching courthouse data works ok in some couties but is a waste of time in others. I can’t figure why with any degree of certainty however, it does seem to work better in less populated counties as opposed to large metropolitan areas. I have also found that it is better to get them to contact you as opposed to you contacting them.
I do this by running I buy houses ads in the paper. It is expensive but it works, especially in large metro areas. Hope this helps!

Re: Contacting owners in preforeclosure - Posted by TRandle

Posted by TRandle on May 22, 2000 at 08:08:09:

We’re also in TX and this is the third month my wife has gone the Kaiser F/C route with notes on doors. We received 2 extremely angry phone calls with warnings about further contact. Unfortunately, Round Two had already gone out, so I guess we’ll see what happens, if anything. We’re going to refine our approach somehow, but at this point, we’re not sure how. I’m hoping others respond to your post. Where in TX are you? Thanks…

Re: Contacting owners in preforeclosure - Posted by Phillip

Posted by Phillip on May 27, 2000 at 19:06:19:

To buy from owners in distress is there some way of doing this without having a large lump of money on hand to cover back expense? How is this done? Hard money lenders?

Re: Contacting owners in preforeclosure - (long - sorry) - Posted by Keith

Posted by Keith on May 22, 2000 at 13:36:48:

Thanks very much for the response and feedback. I was beginning to think I was the only one who had received that type of negative reaction from owners in preforeclosure. Not to sound cynical, believe me there’s a ton of great info both on this site and in the courses. But I feel that a lot of posts on here and some info in the courses glosses over the sensitivity of dealing with an owner facing more than likely one of the most depressing financial situations of their life. Quite frankly, I find it hard to understand how the homeowners can react with such hostility and would rather let the bank have their home? Nonetheless, I’m still moving forward and trying to be sensitive, and really create that “win-win” situation I hear so many here talking about. It’s just difficult to demonstrate that to someone who doesn’t see you as an angel coming to their rescue, rather as a bottom feeding leech who wants to take advantage of them. Where are all the experienced investors here? How are you all dealing with this in your contacts?
For me personally, REI is usually both fun and rewarding but quite frankly it’s not worth getting shot at or threatened with your life to get a great deal. Help? Thanks again so much for this site.
Oh by the way, I’m in the DFW metro area.

Re: Contacting owners in preforeclosure - Posted by BR

Posted by BR on May 29, 2000 at 16:14:30:

Usually not. It is best if you can find them early in the game. That’s why running ads works best. You get calls from people before they get too far behind and even before FC has been filed. Once FC has been filed you have attorney fees to deal with. Even early in the game it usually takes at least 2k for back payments and penalties.

The great state of Texas… - Posted by Anthony-OH

Posted by Anthony-OH on May 22, 2000 at 18:40:01:

Texas…Where its legal to use deadly force to protect your property!

First thing I would try to do when contacting an owner is let them know you are here to help. Explain you could easily just show up at the auction, but that by acting before the auction you may be able to put money in thier pocket and save thier credit from foreclosure. Second, try not to sound like a used car salesman. Try to sound like the good ol’ boy next door who just avoided a foreclosure himself. Try to build a relationship… Invite the owner to the local Steak as big as your car Steakhouse to talk things over… (There’s one every other block in Texas)

I didn’t answer the phone for a month one time when I was dodging collection agents. It is a very delicate time. I would yell at the long distance phone telemarketers just for calling. I needed to vent. Collectors can really p*ss people off and if your there at the wrong time I could see you getting a gun waived in your face. Best thing you can do is make sure the landowner knows your on his side and its the two of you against the world.

Good Luck

Re: Contacting owners in preforeclosure . . . - Posted by JoeKaiser

Posted by JoeKaiser on May 22, 2000 at 14:16:12:

Always remember, when entering the foreclosure arena, be prepared to duck. This is no place for beginners.

I used to do “interviews” as a field rep and knocked on hundreds of doors. Occassionally, the homeowner is not happy to deal with this. That should not be difficult to understand or appreciate.

Still, only once in all that time did I feel like this wasn’t a good time to stick around and left in a hurry. I’m not saying it doesn’t happen . . . it obviously does and is a qenuine concern, and you do need to be on your guard whenever you take this appoach.

By far, though, people are either indifferent, or they are happy to talk about their situations. Sometimes, they welcome you as the answer to their prayers.

But then again . . . I’m not in Texas.