Approaching a Pre-Foreclosure Owner - information??
i am doing the research on foreclosures in my area. I have one
property in mind that I really like. Tax records show the homeowner
bought the house in 95, so they probably have a decent amount of
equity. How do investors approach these homeowners? For the life of
me, I don't know what I could possibly say to even start a dialogue.
Maybe I'm not cut-throat enough? I'm not a sleazeball? I can't put
myself in the pre-foreclosure homeowner's shoes to know how I would
want to be approached. Second question is, say I start a dialogue and
the homeowner is interested in my offer. How can I ensure I get the
property before it goes to auction? Obviously I want to make sure I
have free and clear rights to the property, but what legal documents do
I need to accomplish this? Or better yet, what kind of contract
language?
_Not to worry, they are unlikely to answer the door and even if they do
it won't matter what you say 94% of the time they'll cut you off
midstream with:
"It's taken care of" as the door slams shut.
Now, given the 6% chance of meaningful dialogue I inquire about what
they what to see happen (what are their plans) ... stay in the home?
get another loan? sell? file bankruptcy? or just ignore the whole
process.
_I am a Realtor, and I specialize in selling bank-owned homes. Most
times, it is necessary for me to try and contact the occupant (who is
past saving) and try to help them get funds and relocation help.
So, I often have to approach people who are getting foreclosed on. I
have created a letter with an introduction, my card and some
information which describes the options (the sherrif or me). Many times
they don't answer the door, and I leave the letter on the step.
When I do get a chance to speak with them, I express my sincere desire
to help them. Whether they want the help or not, all I can do is try.
In these cases, they have already lost their home, so there is little I
can do except make things easier for them.
I suggest that you get really clear with yourself on your intentions -
are you a "vulture" or are you a creative investor who hopes to create
a win-win. You can't necessarily help them realize any equity they
might have, but you can help them get moved, save their credit and
honor their debts. You CAN be the hero, if you so choose.
I further suggest that this decision of intention will actually go a
long way towards communicating your goals, as most of communication is
non-verbal. They can pick up your subconscious motives irregardless of
your words. If you are sincerely trying to help, then they will FEEL
it.
No matter waht, you are consciously seeking people who are in a very
dark, unhappy place - if they are being foreclosed on then they usually
have other problems too. Be respectful of their situation (I have been
there, it is not fun) and you will be ok.
Realtors, investors and folks in pre-foreclosure are all the same -
they are just people. If you act with honesty and goodwill, then all
will be well. Good luck, and kudos to you for trying something new!