Promising direct mail lead

3 Replies

Hey everyone,

Here's my question, I just had a promising lead come in on a direct mailer I sent out. They guy is telling me he owes $72,500 and just wants out ASAP. Is there a way I can verify his remaining loan amount? How should I go about this. It's my first promising direct mail lead.

Thanks!

Chris, I'm less familiar with how you can access this in Texas (though I have property there), but I typically would use a two-state process. First, I would look at the Harris County records (assuming that is where the property is) and see when the property was purchased, and what the loan amount was for. Go the the Clerks' website as a good first bet. This will give you a "best case" scenario you can calculate from the year they bought the home and what the initial loan was, which assumes they have been making payments on time, haven't put on a 2nd mortgage, etc..

Second, (assuming you can get a good read from step #1 and it is worth your time), just ask them to get you the latest statement from their lender. That is a direct way to see if they are serious, as well...

Best of luck, sir!

@Chris McDaniel

If it's a deal, get it under contract for the presumed payoff, deliver the contract so they can run their title search and order a payoff from the seller's lender.  If the stated payoff is not correct, your contract should provide avenues to legally and ethically terminate.

You can also have the seller get a written payoff from his lender, but you risk losing a deal to another investor if in fact the seller is motivated.

@Wayne Prentiss  thanks, i checked the county clerks website and found where the deed was issued to the buyer with a price of $83,883 in Nov of 2005. He is telling me he owes $72,500 today, 10 years later. I did some digging around  and interest rates were around 5-6% in Nov, 2005. According to bankrate.com at 6% that would leave a balance of around $71,386, so he seems to be legit?

@Guy Gimenez   thanks for the advise. I am going to try to get it under contract asap, but the seller lives in Maine and I'm in Texas. I spoke with a realtor friend of mine who is going to help me out. Thanks again.

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