What you MUST know about approaching owners -- FORECLOSURES Part 7 A

What you MUST know about approaching owners.

Welcome back to the post. You are about to enter into the “prospecting” phase of this opportunity. Let’s examine your reason for being here. You probably have motives in 2 areas: 1.) to make money and 2.) to help people. It’s important to know your reasons for entering this arena, but it’s just as important to know something about the mindset of the people you will be contacting. You see, these people are not concerned about you making money. They are concerned about being helped. The number one piece of advice I can give you is: project your desire to be HELPFUL to these people. Listen to their concerns and be empathetic. Agree with their concerns and show them you care. Gain their trust and offer your solution.

When you decide to start contacting owners with the idea of “saving them from their dilemma” and getting a “great deal” for yourself, there are a few points to consider:

• The “state of mind” of owners going into pre-foreclosure
• The pre-foreclosure process can be stopped anytime the owner becomes current with their loan

There are two important things to remember regarding the “state of mind” of home owners

The first is: Many of these people have endured personal tragedy. They may have suffered a loss of one or more incomes, experienced expensive medical issues, lost someone they loved, or had to care for a very sick person. They may have been involved in a car accident, a divorce, a child custody battle, or a legal issue. The point is, these are good people with bad things in their lives. They need to feel better about themselves … not worse. Be sensitive and caring to get the best results.

The second is: from the moment they miss one mortgage payment they are hounded by the lender on a daily and weekly basis. They get phone calls, letters, and legal notices. Then the information goes PUBLIC and professional investors are sending them mail and knocking on their doors. They have no way to know who you are or that you come with a solution to their mortgage problem. And quite frankly, they may not even care.

So where does that leave you? Don’t be surprised if you are not greeted as a “hero” with a “solution” when you try to contact them. Delinquent home owners are experts at ignoring the phone and the door bell. They are also proficient at throwing away ALL mail that looks connected with their financial situation. For BEST RESULTS use:

1. Hand written letters - Avoid using address labels because, while efficient, they are impersonal. People are more prone to open hand addressed envelopes and read hand written letters because they appear to be from a friend.
2. Postcards – These can be effective because people won’t open letters but they can see your message on a postcard. TIP: avoid using derogatory words that can be seen by the postman or anybody looking at the postcard (ie: “foreclosure,” “bad credit,” or “hardship.”)
3. Presentation folders left at their door – This will require that you visit the house and leave your “presentation” for the owner to find. The advantage is a professional appearance and message that is directed to them in a personal manner.

I' ll finish this topic in my next post.

Comments

[Mary E.]

What method of contacting owners worked best for you? I have tried sending postcards with no success.

[Ron the Foreclosure Expert]

Mary, that is a good question. The only real success I ever experienced was talking to the owner in person, and that led to a home purchase. I tried mailing postcards for 4-months and made just 2 appointments that did not lead to a purchase. However, the wording and graphics on my postcards may have not been very effective. The presentation folder idea came from another investor friend who had pretty good success getting appointments.