pre-foreclosure - Posted by Brent_va

Posted by Rob on May 08, 2001 at 17:47:25:

I am doing a eviction for my mother. I am wondering at settlement court do all lawyers want to settle asap, or do they want to go to court, so they can milk the cow for more?


pre-foreclosure - Posted by Brent_va

Posted by Brent_va on May 07, 2001 at 08:08:02:

I found a pre-foreclosure last week and sent the owners a letter. They called me on saturday afternoon asking if I could help them out of their situation. I asked them some questions about the house, how much are the late payments etc. They tell me they just don’t want a foreclosure on there record. I told them I would like to see the property so they asked me if I could come over now. I told them I’ll be there in a hour and a half. They showed me there house which was in purfect condition. Very nice three bed two bath house in a nice neighborhood. We then sat down and we talked how I could help them. I explained the “subj to” to them and I would have to find a tenant or buyer for the house and the loan will stay in there name until it it sold or refinanced. They said that would not be a problem, they where just concerned on how that they would know that the payments would be getting paid. I told them that they could look on there statement or I would give them recipts of payment. Now they are stearing away from selling there house. How does someone that was so motivated about selling there house become unmotivated. Should I not give them so much information on the subj to and finding a buyer. By the way I talked to them on saturday and on sunday afternoon I found a buyer who wants to buy the house.
The house value is around 137.5k and the the payoff on the house is 117k with the legal fees and fines that have occured that would leave 20.5k left for closing and what ever expenses that I might occur, I think that that would be pretty good for a day’s work however I can’t get hold of the property owners now. Can someone give me some advise on what I did wrong.

One question… - Posted by Bob (Md)

Posted by Bob (Md) on May 07, 2001 at 13:59:14:

Quick question for the experienced folks. Would it help to build credibility if you had a disinterested 3rd party handling collections and disbursements? Would the seller be more comfortable if a bank, attorney, or other trusted party were handling the money?

Re: pre-foreclosure - Posted by B.L.Renfrow

Posted by B.L.Renfrow on May 07, 2001 at 09:17:12:

Join the club! That’s a TYPICAL response from those in foreclosure. They inevitably think some sort of miracle will happen at the last minute to save their home. Sometimes they continue with this line of thinking until the sheriff shows up to evict them after the foreclosure auction. No matter how much sense it makes for them to do the deal you proposed, they can’t or won’t make that decision.

It’s possible you gave them TOO MUCH information. I’ve found the fastest way to scare them off is to start talking about all the details, land trusts, etc. Now, I just say something like, “So…if we could work out something where your payments would be taken over, the loan would be brought current and you could forget about this house and move on with your life, would that work for you?” Of course, most of them will respond affirmatively. I tell them the loan would stay in their name until it’s either refinanced or paid off, and I tell them that might occur soon, or it might be years…but either way, it will reflect positively on their credit report. If they are interested, I will have them sign a purchase and sale agreement on the spot. This is NOT the time to whip out all the land trust documents, deeds and all that stuff. That should come later. But once they’ve signed a purchase agreement, at least with some people, they will feel more committed to going through with the deal.

Another thing that commonly happens is that after you spoke with them, they may have discussed the offer with their neighbor, family, the niece who is a RE agent, cousin Jethro the lawyer, or any other number of third-party advisors. If so, chances are about 100% that one of these “advisors” told them, “Oh, no, don’t do that. It’s illegal…immoral…that #$%& investor is taking advantage of you…you can get a better deal elsewhere…etc.”

About all you can do is try to keep in touch with them, and let them know time is of the essence and the longer they wait, the harder it’s going to be for you – or anyone else – to help them out.

Brian (NY)

Re: pre-foreclosure - Posted by Terry (Houston)

Posted by Terry (Houston) on May 07, 2001 at 09:05:28:

I agree with JT.

You might follow up with a letter to the effect of
“I enjoyed our conversation on Saturday. To recap I am prepared to write a check in the amount of $xxx to your mtg. company so that we can stop the foreclosure. I know by now you realize that a foreclosure is a permanent mark on your credit and my company specializes in making sure that doesn’t happen.”
Etc Etc etc… Please contact me at …

Sometimes it is bet to move on. But for $20k it is worth the follow up I would think.


Re: pre-foreclosure - Posted by Joe(NY)

Posted by Joe(NY) on May 07, 2001 at 08:44:46:

I’d like to know how you found them in the first place?

Re: pre-foreclosure - Posted by JT - IN

Posted by JT - IN on May 07, 2001 at 08:29:55:

You just met an “average” person in foreclosure. They are going to solve the problem, you almost had them talked into making a sensible decision, but then the reality of the moment crept upon them.
Most people, with few exceptions, do not arrive in foreclosure by making good decisions. We suddenly expect, me included, that we offer them a reasonable solution and they will wake up and smell the coffee. NOPE!
The starteling fact of haing to move out of their house, as if it is not going to happen anyway, it too much reality for these ostriches who put their head in a hole below the problem, cause the vision is more palatable.
As for what you did wrong, I can’t tell from the limited description. You can just try to reinforce the positives of having their unpleasant situation taken care, “and you do want that, don’t you Mr. & Mrs. Smith”?

Just the way I see things…


Re: One question… - Posted by JT - IN

Posted by JT - IN on May 07, 2001 at 15:58:05:

Yes, maybe the Seller would feel better, but as an experienced investor, I do not want the Bank, Atty or ??? handling the $$$$$, cause they all charge a fee for this.
I think if you display confidence and competence to the Seller, then they will perceive you as same.

Just the way I view things…


Re: pre-foreclosure - Posted by JT - IN

Posted by JT - IN on May 07, 2001 at 09:35:56:

As I was reading your post, it reminded me of something that I used to use as a Real Estate Agent, years ago, working with a buyer or seller, knowing that they would talk to that party, (cousine, brother, etc.) who would advise them that this is bad; think all the negative thoughts on their own.
When I had concluded my business with them, and all things were positive, I would simply reach into my pocket and pull out two wrapped candies, hand each one of them one. I would tell them that those look like candy, but they are not; they are Buyer (or Sellers) remorse pills. Then I would go about explaining what was going to happen when I left, that they would begin worrying if they were doing the right thing, or that a friend would advise them that they should have done otherwise… When those feelings come upon you, just take out this Buyer/Sellers remorse pill, and that will make you feel better.
Obviously, these weren’t prescription, and could do nothing to help them, but by going through this process of explaining to them ahead of time, what would likely happen, they were somehow a bit prepared for this. Many times, when I would have my next contact, the Buyer or Seller would thank me for going through that with them, because they then felt that what they were facing was “normal”.
I hadn’t even thought about using some of that hokey stuff in my business today, maybe I should revisit some those things, cause they do work!

Just the way I see things…


Re: try lawyer’s journals too… - Posted by SueC

Posted by SueC on May 08, 2001 at 11:17:49:

Generally, local bar associations have publications that come out weekly, these often contain all of the legal filings the previous week or two (since there is often a publication requirement). Your local county bar association or even the sheriff’s office might be able to tell you where these are published. I get a list of 15-20 names out of mine every week. Plus, it lists divorce proceedings, estate notices, tax sales, foreclosure sales, etc. A gold mine in my neck of the woods, for only $79 a year.


Re: pre-foreclosure - Posted by Jim C

Posted by Jim C on May 07, 2001 at 12:06:45:

There is a Preforeclosure magazine that gives the names and addresses for the ones in my area (New Jersey). The magazine is called American Foreclosures.

They have a website-

They should have one with Preforeclosures in your area. Check it out. It’s a good magazine.


Jim C

Re: try lawyer’s journals too… - Posted by Joe(NY)

Posted by Joe(NY) on May 08, 2001 at 12:15:19:

Thanks! I will look for such a journal in my area (Westchester, New York).

Re: pre-foreclosure - Posted by Allie

Posted by Allie on May 07, 2001 at 13:00:05:

the County Court house has file of Lis Pendens. You go to the clerks office and to the records room. Someone will show you where the file is kept. New ones are added daily.