Preforclosure reluctance from owner's - Posted by Neil

Posted by Neil on March 25, 2002 at 24:22:27:

Thanks for your comments. How do you approach these people? Do you do mailings? I heard you don’t get good responses to these. Do you go to there house. It seems you are putting a lot of miles on your car. I am willing to do whatever it takes but I want to work smart and not spin my wheels. I know I have to get in the trenches but I kind of want to know which angle I should be aiming at.

Preforclosure reluctance from owner’s - Posted by Neil

Posted by Neil on March 23, 2002 at 09:55:10:

I want to know if and what reluctance is there with owners facing preforclosures. I have listings of forclosures, some just down the street from me. I know some people do mailings, which I probably will do, but what do you think about going to the front door and ringing the doorbell? I am sure I will face some reluctance, denial, and maybe some outrage. Anybody with preforclosure experience out there?

Re: Preforclosure reluctance from owner’s - Posted by Ken P.

Posted by Ken P. on March 24, 2002 at 21:10:04:


The biggest thing with people in preforeclosure is that they typically hide their heads in the sand - they don’t want to face the inevitable. Since you can stop paying your mortgage and pretty much stay in your house for over a year they often think that maybe they’ll get “overlooked” and their house won’t get taken back by the bank. So Denial is an especially huge issue. But keep in mind that they have creditors calling ALL the time and they will be VERY weary of you, thinking that you’ll be wanting to take complete advantage of them.

I approach them as a problem-solver with a genuine and sincere (but very straight-forward) demeanor. There are MANY that will eventually come around and say they’ll work with you, but don’t bet the bank on it until you get the signed deed (or whatever it is you are doing). Many will have you thinking they’ll work with you and after you’ve spent five hours on the deal (negotiating with their lenders, talking to attorneys, etc.) they won’t come through. It used to happen to me all the time when I first started out.

In order to be successful you must move FAST and know what you are doing. DO NOT waste your time with anyone who is not interested in doing anything. Just move on to the next prospect. When you find a “live” one make sure you know EXACTLY what you are going to do and make the deal happen immediately. Be prepared with everything you need (contracts, quitclaim forms, whatever) when you meet them for the first time. If the deal doesn’t happen then, you’ve decreased its chances of ever happening enormously.

Preforeclosures are perhaps the hardest way to do R.E. but they can DEFINITELY be the most lucrative.

Good luck,

Ken P.