I used to do pre-foreclosures back in the 80’s, & it was rewarding
to be able to give folks a fresh start. The people I helped realized
their situations could not remain static & they were thrilled to be
able to literally move on.
I think you can be both considerate & direct (“Where do you plan
to go if I buy your home?”) if you take care in listening to the
answers to your questions. I like leading 2 or 3 word sentences–
“And if. . .?” or “And if not?”
Living well w/yourself is as important as living well w/others, but
in order to do our jobs as investors well, we have to learn which
deals make sense vs. those that don’t, even when they just break
your heart. I am mad as all get-out over the fact that our
economy is so (stupidly) bad that some families can’t even afford
my decidedly inexpensive properties. There are some really sad
stories, & there are going to be many more.
Scott, I think you need to think carefully about what you want to
do & how you intend to go about the doing. You can modify your
biz plan as you go, but put it down in writing so you are clear on
your goals. That w/help you in assessing whether or not a deal is
right for you. If it doesn’t fit your criteria, move on.
Good luck, & I hope you figure out how to help lots of folks–
I’m sure that all of the people who have been doing short sales and wholesale deals on preforeclosure properties have run into the sellers who REALLY want to stay in the property… How are you handling this type of an objection to the process? Is it possible that you have someone with a documented ability (i.e. income verification) to make the payments if they were current on the mortgage, and you were able to find an investor that would rent to own, etc. back to the occupant?? (Obviously this is risky considering they are in foreclosure for a reason, most times…)
Basically, I am talking with about 1-4 homeowners per week and I am trying to come up with a “script” for when someone calls me and says “What can you do to help me?” or “Will I be able to keep my home?”. Any advice on the matter would be greatly appreciated.
“What can you do to help me?”…I can assist you in getting out of foreclosure, saving your credit and making it possible for you to start anew again without having bad credit for years and years.
Will I be able to keep my home?..Unfortunately NO (fair and firm)…your situation is such that without immediate action you are going to lose it, get nothing for your equity at the sale, ruin your credit in the process and be unable to purchase another home for a long time.
My credit is already ruined…what do I care?..That is the problem I face in trying to assist you and you are failing to face in dealing with your situation. “Would you loan to me if I were in your situation?” I am offering to help you as best I can…would you do the same?
Check the Archeves, as this has been discussed extensively.
Basically, you do not want to EVER allow the sellers to remain in
the home. They w/never relinguish emotional ownership to you &
you could end up w/major legal problems. Feel sympathy for
those who insist on staying, but recognize those are not your
sellers.
Bill, you stated “get nothing for your equity at the sale”. With A/G’s coming out all over the place, you go to be real careful what you tell the homeowner. They might very well get some equity back, depending how much they had in the 1st place, right?
Thanks for taking the time to give me some positive suggestions to handling these types of questions! I know that when I’m dealing with these types of sellers that there is a way to be considerate without giving false hope. I don’t have the intention or ability to help them keep the property, but I didn’t know how to phrase these basic ideas without killing the deal. I just want to be sure that I am doing this as ethically as possible.
I’m very careful not to tell people that they will lose it all if it goes to sale. I think that’s part of what’s getting unscrupulous investors in trouble. It’s a misleading statement.