hello BP! How can I go about pre-foreclosures lists? Cold call or send letters to them?
@Angelor Montlouis Hi! I target pre-foreclosures and I have gotten better results sending mailers and door knocking. The issue is they usually don't do anything. People in this situation are not really proactive and usually are emotionally drained. I am very creative with my marketing and with my message. Sellers trusting you and believing that you can get the deal done will make the difference. They already have a ton of other investors saying they can help them. Be the first or the last option. Good luck and hope this helps!
I like the option of direct mail. Door knocking or cold calling will get you a quicker response but is a bit more invasive on the seller. As far as getting them to act on anything, maybe try offering them a subject to/seller financing deal in which they maintain the loan they have in their name and you take over title and payments. Then you rehab and either sell to pay them and their loan off, win-win for everyone. The key here is to get them to trust that you can and will deliver and help them out however you can in their situation, they are already motivated because they are at the risk of getting foreclosed on.
@Christina Traffanstedt the law's in Oregon changed in 07/08 with how you handle pre foreclosure and you must be a licensed foreclosure agent to deal with those in foreclosure.. now most don't know this but it is the law.. as well as how you can work through the deal.. sub too rent back is not legal at all.
etc etc.. be sure to check with a good real estate attorney before venturing into this.
@Angelor Montlouis same with CA there are laws that went on the books in the last 10 years that regulate this activity.. many other states back east NO rules.. but WA OR CA have a definit set of rules one must follow to do this legally.
ok thank you all for the advice. I will talk to an attorney to see the best way to proceed. I really appreciate your input.
Nothing I say in this post is legal advice. I am not offering you any legal advice and not creating an attorney client relationship with you. It is purely informative for discussion.
From the Oregon State DOJ. In 2009, the legislature enacted two bills related to short sales and loan modifications. House Bill 2191 created a registration requirement for persons who provide debt management services and House Bill 2189 created a licensing requirement for persons doing mortgage loan origination. The Department of Consumer and Business Services (DCBS) is responsible for both programs.
A person or company offering short sales / loan modifications in Oregon may legally do so with:
1) A debt management company registration;
2) A mortgage loan originator license; or
3) A real estate broker license if they do NOT charge any special fees related to short sales.
Get an agent and talk to a real estate attorney.
okay Brain Bradley thank you for your advice.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing