BiggerPockets

Getting Deals Before The Nod Is Filed

You may have heard in the past that the value is in the list. Well, when it comes to being the first in line to talk with homeowners about buying their home via short sale or helping them doing a loan modification then mortgage late leads are the only game in town!

A homeowners interest in selling or restructuring their mortgage loan peaks and is never more urgent for resolution than when they have fallen behind in their mortgage payments. Once they have fallen behind the increased collection calls can become a nerve wracking experience for most. This happens long before any notice of default filing has been started.

So, if the homeowners urgency for making their mortgage problem go away increases as their situation deteriorates, it only makes sense the sooner you, the investor, can move in to help cure the problem, the better.

Once a mortgage is 30 days past due about 20% of the homeowners know that their ship is sinking and they simply have no way of making that up.

At the 60 day past due mark then half or 50% do not have the capacity to catch up. At this point, most are realizing that even if they could catch up, due to the current market conditions it may be best to look at other alternatives.

When a homeowner becomes 90 days past due there is an 80-85% certainty all is lost unless they get outside help through loan modification or selling the house. Most sales under the current market conditions have a short sale possibility.

Under most circumstances a notice of default at the earliest stage isn't filed until the mortgage is 120 days past due. At that point the troubled property becomes public record and the homeowner is bombarded with offers from investors and realtors alike.

These homeowners that have gotten 30, 60 or 90 days past due are a literal gold mine to those that can get their hands on them. Therein lies the problem, list companies provide these leads but they carry stringent disclosure and mortgage licensing requirements, put in place by the credit bureaus, that the average investor, realtor nor loan modification specialist can meet.

There are but a few places where these leads can be found and pricing can be prohibitive gusting over a buck a lead or requirements to get a minimum of 5000 leads. Either way this can be tough to stomach for a lot of investors.

So, when saying "the value is in the list" truly sums up these kind of leads. Investors that market to these on a consistent basis have found a steady stream of motivated sellers long before the average investor even knows anything about it.

Needless to say, when you have a steady stream of motivated prospects coming your way you'll see that profit margin keep going up and up!

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