The third thing to do is get the owners commitment to return your calls and keep the process going. They may be accustomed to “avoiding” collections calls and that could be a hard habit to break. One way to get around that problem is to always ask them the best time to call. Make a follow-up appointment and contact them when they are expecting your call. This will increase your chances of getting them to pick up the phone.
The fourth thing to do is to assess the condition of the property. You can do this during your initial contact with the owner. You might be willing to buy the property “as is” because owners in foreclosure may not have the money to make repairs. But you still want to keep a tab of estimated repair costs as you structure the deal. Your willingness to put some “sweat equity” in the property after you purchase it will increase the chances of realizing a “good bargain.”
The fifth thing to do is evaluate all your updated financial information to make sure the deal still makes sense. Use this time to contact the lender(s) and see if they will negotiate. After you have sent your authorization form and establish your right to talk to them, escalate the call to a financial decision maker. Tell the lenders you are trying to help them avoid further losses from the foreclosure process.
Assess your best deal from the lenders. Also, use this time to balance your known repair items against contractor quotes. Decide your best strategy and determine what you will actually offer the owner. We used the Letter of Intent earlier just in case the financials changed.
You are about to close the deal and buy a pre-foreclosure property. There is one more installment coming your way that will help you confidently finish the transaction and start down the road to realizing your profit.
PS … email me if you would like an AUTHORIZATION FORM.
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