BiggerPockets

Hey all,

I'm just really getting started and I am wondering about which group to market my direct mail campaign to when it comes to Short Sales. I have subscribed to my local city legal newspaper and I am wondering if it is more effective to campaign to the people who have just had Lis Pendens filed or the records of the Foreclosure sale itself. I think I am kind of confused when it comes to the short sale process... are the banks still willing to short sale if the foreclosure has reached final judgement and the auction has been scheduled, or is it more effective to find those home owners who just had Lis Pendens filed and save the bank the trouble of the rest of the foreclosure process.

Thanks

Raymond,
You want as much time as you can get to sell that property. If you are marketing it normally it is going to need to sit on the market for sometime because of the amount of inventory in the market. Reports state that properties are staying on the market for 6-8 months. Lis Pendens means that process has already started and that the clock is ticking. Your best best is to advertise to people before they have a problem. You can still look to close a short sale up to the date of the sale and if the lender so chooses they will give your deal more time. This is coming from someone who has worked for the banks internally and continue to negotiate these types of arrangements in bulk for our clients.

Mike,
You don't even need to be behind to get a short sale completed. I used to work for the largest lender in the US. I deal with this daily. Borrowers do not need to be behind. Please for the sake of the people that will read this do not spread these rumors. I hear these rumbling through out the blog-o-sphere and it is all wrong. Short Pay Offs are complete in most types of debt vehicles.

Regards to all,

Probably depends on your court's procedures but we'd suggest to look for companies that professionally do this type of work. We suggest it may be worth dealing with an organization that specializes in your area. They will get you mostly complete information and the great part about a free market is there are probably a few competing for your business and that helps keep the costs down. There are cases where we have seen companies that offer various counties as bundles and so forth. Best of luck. Ask your local real estate professionals that work in the areas your interested in the niche you are interested in working and ask them where they buy their leads.

Regards,

Raymond,

The above comments are full of great advice. Here are my two cents, some banks are recognizing the benefit of having a good process for dealing with short sales.

However, I am noticing that real estate agents and sellers are wasting a ton of time trying to get a bank to agree to a short sale with no written offer. Don't fall for this trap, as it is easy to do.

good luck.

Pre NOD's are a gold mine. I purchase 60 day lates and have them filter the leads by Homeowners credit score, LTV, second mortgages, etc. To be sure that I'm contacting people who will not qualify for loan mod and prime candidate for short sale. These leads should cost .30 to .60 per lead depending where you buy from and how many at a time. Be careful that you dont buy old lists and out dated info. Make sure the company you purchase from updates there data every 3 days. I get a new list begining of each month.

how do you get a list of 60 day lates? I've been using the les pendens, and I would LOVE to get at them earlier.

Ryan,

Can you recommend the company that provides you your leads that are 3 days old. I just saw a webinar from SalesTeamLive.com and they do everything for you except you do pay for it. And right now .30 to .60 sounds a lot better and I can afford that right now.

Thanks,
Nancy Dito

There are 12 ways I use to have properties attracted to me on a consistent basis.

Following are ways to have sellers calling you:

1. Network with agents and brokers in your areas letting them know you are looking to help homeowners who are in default
2. Become acclimated with your local real estate investment clubs, network and then network some more.
3. Present yourself to one good BK attorney
4. Subscribe to a foreclosure service provider who tracks your areas pre-foreclosures
5. Subscribe to the 30-90 day "pre default" list providers
6. Market through signage
7. Introduce yourself to loan mod companies as a buyer for clients that they can't get accepted (be wary though, many will have caused additional duress for the homeowner as they may have been promised the moon)
8. Leave your business cards wherever you go
9. Introduce yourself to at least 1 good divorce attorney
10. Introduce yourself to at least 1 good criminal defense attorney
11. Find some good bird dogs to work with you
12. Lead generation through the internet (website, etc)