Finishing the previous foreclosure post, part 7A.
It is very possible to find foreclosure deals and approach the delinquent owners with calls, mail, and personal visits. Just be prepared to have a large portion of these people either ignore you completely OR close the door in your face. But let’s put this in perspective: Do you really care how many doors were closed in your face once you find the owner who says "O.K. - I'll sell to you."
Be aware the pre-foreclosure process can be stopped anytime the owner becomes current with their loan. This also means that all your marketing efforts to any delinquent owner could be made VOID at any time during the process. That’s because the owner can bring their loan current at any time or strike a deal with their lender to modify their loan. While this is a good thing for the owner because they keep their house – YOU have to start over and look for another pre-foreclosure. Refer back to segment 6 for reminders on this topic.
Here is another tip: You may be unaware that a house is no longer in pre-foreclosure as you continue trying to contact the owner. While “perseverance” is a virtue that leads to success, it is a waste of time if the owner has worked out their issues with their lender. How will you know if this has happened? Go back to the source of your information and see if they provide updates.
Let’s summarize topic 7:
- you can find pre-foreclosures in a variety of “public” places at the “90-day” mark
- every investor has the same opportunity as you
- be empathetic to the owner and their situation
- owners are experts at avoiding contact – you must be “thick skinned” and be able to take a “NO”
- some methods of contact are better than others
- a pre-foreclosure can be made “current” without you knowing it
- when you get a great pre-foreclosure deal … the process will be worth it
This concludes segment seven.
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