Which states have laws against door knocking Pre-foreclosues?
Real Estate Coach · Riverside County, CA · Member since 2017 · 238 posts · 157 votes
Which states have laws against door knocking Pre-foreclosues?
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y@Mike Hern
I know Maryland does
7e investments53 Reviews
13 Replies
- Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes3y
Quote from @John Slater:
I’m learning some states have laws against door knocking pre-foreclosures/distressed homeowners. I see a lot about “equity skimming” which is very specific and doesn’t mean every investor is looking to skim because they door knock.
Which states can you not door-knock? How do agents get around this? And, are there any exceptions around door knocking pre foreclosures on those states?
Washington Oregon California and a few others.
Generally, an agent can door knock if the purpose is to List the property. However, if it's the intent of the agent to purchase for their own portfolio it may be a violation of law. "May be" doesn't necessarily mean "Will be" so check with your local attorney. - Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3y
@Mike Hern
I know Maryland does
7e investments53 Reviews - Professional · Rancho Santa Fe, CA · Member since 2015 · 44 posts · 39 votes3y
Quote from @John Slater:
I’m learning some states have laws against door knocking pre-foreclosures/distressed homeowners. I see a lot about “equity skimming” which is very specific and doesn’t mean every investor is looking to skim because they door knock.
Which states can you not door-knock? How do agents get around this? And, are there any exceptions around door knocking pre foreclosures on those states?
Hi John, I was just thinking to myself why anyone would want to door knock. I love direct sales but it seems to be door knocking for leads or sales is the proverbial "needle in the haystack" style of marketing. I personally like to use attraction or content marketing; better use of my time, less rejection (which takes a psychological toll on you) and higher quality leads. I get fresh leads everyday by posting quality, non commercial contemporary content on a daily basis.
- Real Estate Coach · Riverside County, CA · Member since 2017 · 238 posts · 157 votes3yHi.. in some ways I don't disagree, however for me it really depends on the type of lead. I've had success with direct marketing, cold calling and social posts, but when it comes to the topic of pre-foreclosures, being able to strand face to face with a homeowner can make a huge difference, just my experience. For the "needle in the haystack" perspective, not really, I'd be pulling a list of properties I know in pre-foreclosure and going door to door to them specifically. In fact, my dk plan for a long time has been "identify the property in foreclosure, DK 5 properties either side of that house as "a realtor in the area saying hi", then have a difference conversation with the owners in foreclosure, so it is targeted rather than needle in a haystack.
Quote from @Claude Diamond:
Quote from @John Slater:
I’m learning some states have laws against door knocking pre-foreclosures/distressed homeowners. I see a lot about “equity skimming” which is very specific and doesn’t mean every investor is looking to skim because they door knock.
Which states can you not door-knock? How do agents get around this? And, are there any exceptions around door knocking pre foreclosures on those states?
Hi John, I was just thinking to myself why anyone would want to door knock. I love direct sales but it seems to be door knocking for leads or sales is the proverbial "needle in the haystack" style of marketing. I personally like to use attraction or content marketing; better use of my time, less rejection (which takes a psychological toll on you) and higher quality leads. I get fresh leads everyday by posting quality, non commercial contemporary content on a daily basis.
- Real Estate Investor and Instructor · Gilbert, AZ · Member since 2010 · 303 posts · 332 votes3y
Quote from @Claude Diamond:
Quote from @John Slater:
I’m learning some states have laws against door knocking pre-foreclosures/distressed homeowners. I see a lot about “equity skimming” which is very specific and doesn’t mean every investor is looking to skim because they door knock.
Which states can you not door-knock? How do agents get around this? And, are there any exceptions around door knocking pre foreclosures on those states?
Hi John, I was just thinking to myself why anyone would want to door knock. I love direct sales but it seems to be door knocking for leads or sales is the proverbial "needle in the haystack" style of marketing. I personally like to use attraction or content marketing; better use of my time, less rejection (which takes a psychological toll on you) and higher quality leads. I get fresh leads everyday by posting quality, non commercial contemporary content on a daily basis.
If you're door knocking pre-foreclosures this is NOT needle in the haystack. As long as you scrub your list and confirm the homeowner still has an active foreclosure pending, you are knocking on the door of one of the most motivated sellers on the planet. I prefer that over direct mail, text message blasting or bandit signs. I'd rather talk to 5 motivated sellers per week than 100 unmotivated sellers.
I have a 30-day marketing plan for active foreclosures that includes a combination of personalized letters, text messaging and door knocking and I attempt to make contact with the homeowner up until 24 hours before their auction date. I call the last 7 days before the auction date "hell week" for a homeowner in foreclosure. They're out of time, stressed out and have few options. If you know what you're doing and can stop the foreclosure you'll close a lot of deals.
- New to Real Estate · UT · Member since 2020 · 16 posts · 9 votes2y
Quote from @Marty Boardman:
Quote from @Claude Diamond:
Quote from @John Slater:
I’m learning some states have laws against door knocking pre-foreclosures/distressed homeowners. I see a lot about “equity skimming” which is very specific and doesn’t mean every investor is looking to skim because they door knock.
Which states can you not door-knock? How do agents get around this? And, are there any exceptions around door knocking pre foreclosures on those states?
Hi John, I was just thinking to myself why anyone would want to door knock. I love direct sales but it seems to be door knocking for leads or sales is the proverbial "needle in the haystack" style of marketing. I personally like to use attraction or content marketing; better use of my time, less rejection (which takes a psychological toll on you) and higher quality leads. I get fresh leads everyday by posting quality, non commercial contemporary content on a daily basis.
If you're door knocking pre-foreclosures this is NOT needle in the haystack. As long as you scrub your list and confirm the homeowner still has an active foreclosure pending, you are knocking on the door of one of the most motivated sellers on the planet. I prefer that over direct mail, text message blasting or bandit signs. I'd rather talk to 5 motivated sellers per week than 100 unmotivated sellers.
I have a 30-day marketing plan for active foreclosures that includes a combination of personalized letters, text messaging and door knocking and I attempt to make contact with the homeowner up until 24 hours before their auction date. I call the last 7 days before the auction date "hell week" for a homeowner in foreclosure. They're out of time, stressed out and have few options. If you know what you're doing and can stop the foreclosure you'll close a lot of deals.
If the NOD paperwork doesn't have the attorney information, how do you know the property is still in foreclosure and when the auction is going to be held?
- Member since 2019 · 30 posts · 9 votes2y
I understand it varies by jurisdiction of course, but.. Since this post got bumped, I'd love to hear any tips or tricks anyone would care to share about your last minute "game plan" if you happen to get a strong lead to reach back out/etc, with under 24-48 hours before auction.
(other than having cash/equivalent, preliminary title report, and the appropriate deed ready to go 'on hand')
- Real Estate Investor and Instructor · Gilbert, AZ · Member since 2010 · 303 posts · 332 votes2y
Quote from @Kearsten M Higgs:
Quote from @Marty Boardman:
Quote from @Claude Diamond:
Quote from @John Slater:
I’m learning some states have laws against door knocking pre-foreclosures/distressed homeowners. I see a lot about “equity skimming” which is very specific and doesn’t mean every investor is looking to skim because they door knock.
Which states can you not door-knock? How do agents get around this? And, are there any exceptions around door knocking pre foreclosures on those states?
Hi John, I was just thinking to myself why anyone would want to door knock. I love direct sales but it seems to be door knocking for leads or sales is the proverbial "needle in the haystack" style of marketing. I personally like to use attraction or content marketing; better use of my time, less rejection (which takes a psychological toll on you) and higher quality leads. I get fresh leads everyday by posting quality, non commercial contemporary content on a daily basis.
If you're door knocking pre-foreclosures this is NOT needle in the haystack. As long as you scrub your list and confirm the homeowner still has an active foreclosure pending, you are knocking on the door of one of the most motivated sellers on the planet. I prefer that over direct mail, text message blasting or bandit signs. I'd rather talk to 5 motivated sellers per week than 100 unmotivated sellers.
I have a 30-day marketing plan for active foreclosures that includes a combination of personalized letters, text messaging and door knocking and I attempt to make contact with the homeowner up until 24 hours before their auction date. I call the last 7 days before the auction date "hell week" for a homeowner in foreclosure. They're out of time, stressed out and have few options. If you know what you're doing and can stop the foreclosure you'll close a lot of deals.
If the NOD paperwork doesn't have the attorney information, how do you know the property is still in foreclosure and when the auction is going to be held?
In Utah, you're searching for the Notice of Trustee's Sale. You can find that document recorded at the county where the property is located, or you can search public notices (here's a link for Utah):
https://www.utahlegals.com/(S(qz3suyqbucrgtawc2hx2bhv4))/def...
Search 'foreclosures' in the dropdown menu.
The Notice of Trustee's Sale will contain the "trustee" name, that is who represents the lender in the proceedings and you can contact to verify the case is still active. Sometimes it's an attorney, it could also be a title company.
Also, if you're going to the county to search for the notice they will not give you a "list" of foreclosures. The county doesn't compile lists, all they do is publish these notices.
Hope that helps!
- Real Estate Investor and Instructor · Gilbert, AZ · Member since 2010 · 303 posts · 332 votes2y
Quote from @Scott Davis:
I understand it varies by jurisdiction of course, but.. Since this post got bumped, I'd love to hear any tips or tricks anyone would care to share about your last minute "game plan" if you happen to get a strong lead to reach back out/etc, with under 24-48 hours before auction.
(other than having cash/equivalent, preliminary title report, and the appropriate deed ready to go 'on hand')
The MOST difficult part of this will be getting the lender to provide you with the reinstatement figure to bring the loan current (I do this and take title sub-to because it's actually easier to get the lender to provide a reinstatement than a full payoff).
To do this, contact the lender WITH the seller on the phone. Tell them that you're helping out the homeowner and have the funds to bring the loan current. Don't give up. Call back as many times as it takes until you get someone on the line that can do this for you. Sometimes they'll provide the figure and you can wire it in. I've brought cashier's checks to the auctioneer at the courthouse steps to stop the sale before. Other times the lender gave us a postponement (anywhere from 7-14 days) to get the funds sent in.
This is like pulling off a touchdown drive with a minute on the clock and no timeouts. It's nerve-racking, but a rush if you can get it done and help the homeowner avoid losing their home at auction.
- Paradise, CA · Member since 2015 · 1k+ posts · 871 votes2y
Quote from @Marty Boardman:
Quote from @Scott Davis:
I understand it varies by jurisdiction of course, but.. Since this post got bumped, I'd love to hear any tips or tricks anyone would care to share about your last minute "game plan" if you happen to get a strong lead to reach back out/etc, with under 24-48 hours before auction.
(other than having cash/equivalent, preliminary title report, and the appropriate deed ready to go 'on hand')
The MOST difficult part of this will be getting the lender to provide you with the reinstatement figure to bring the loan current (I do this and take title sub-to because it's actually easier to get the lender to provide a reinstatement than a full payoff).
To do this, contact the lender WITH the seller on the phone. Tell them that you're helping out the homeowner and have the funds to bring the loan current. Don't give up. Call back as many times as it takes until you get someone on the line that can do this for you. Sometimes they'll provide the figure and you can wire it in. I've brought cashier's checks to the auctioneer at the courthouse steps to stop the sale before. Other times the lender gave us a postponement (anywhere from 7-14 days) to get the funds sent in.
This is like pulling off a touchdown drive with a minute on the clock and no timeouts. It's nerve-racking, but a rush if you can get it done and help the homeowner avoid losing their home at auction.
I'm suspicious of your recollection of how it works. You brought cashiers checks, to the foreclosure sale, with the intent to stop the sale? I can tell you that isn't how California foreclosure sales work. I can tell you if you are not an attorney you would be running afoul of California foreclosure consultant registration laws if you applied your scenario to a borrower in foreclosure. I can tell you that the borrower has no legal right to reinstate the loan at the courthouse steps. I can tell you a reinstatement and a payoff quote come from the same department in a bank and, follow the same parameters per federal rule.
Maybe it's pulling off a touch down with 1 minute to go but sounds like maybe scoring on the wrong end of the field.
Maybe you meant something different or maybe this is a tactic for a different state or, maybe I just misunderstood what you were trying to say. - Real Estate Investor and Instructor · Gilbert, AZ · Member since 2010 · 303 posts · 332 votes2y
Quote from @Ron S.:
Quote from @Marty Boardman:
Quote from @Scott Davis:
I understand it varies by jurisdiction of course, but.. Since this post got bumped, I'd love to hear any tips or tricks anyone would care to share about your last minute "game plan" if you happen to get a strong lead to reach back out/etc, with under 24-48 hours before auction.
(other than having cash/equivalent, preliminary title report, and the appropriate deed ready to go 'on hand')
The MOST difficult part of this will be getting the lender to provide you with the reinstatement figure to bring the loan current (I do this and take title sub-to because it's actually easier to get the lender to provide a reinstatement than a full payoff).
To do this, contact the lender WITH the seller on the phone. Tell them that you're helping out the homeowner and have the funds to bring the loan current. Don't give up. Call back as many times as it takes until you get someone on the line that can do this for you. Sometimes they'll provide the figure and you can wire it in. I've brought cashier's checks to the auctioneer at the courthouse steps to stop the sale before. Other times the lender gave us a postponement (anywhere from 7-14 days) to get the funds sent in.
This is like pulling off a touchdown drive with a minute on the clock and no timeouts. It's nerve-racking, but a rush if you can get it done and help the homeowner avoid losing their home at auction.
I'm suspicious of your recollection of how it works. You brought cashiers checks, to the foreclosure sale, with the intent to stop the sale? I can tell you that isn't how California foreclosure sales work. I can tell you if you are not an attorney you would be running afoul of California foreclosure consultant registration laws if you applied your scenario to a borrower in foreclosure. I can tell you that the borrower has no legal right to reinstate the loan at the courthouse steps. I can tell you a reinstatement and a payoff quote come from the same department in a bank and, follow the same parameters per federal rule.
Maybe it's pulling off a touch down with 1 minute to go but sounds like maybe scoring on the wrong end of the field.
Maybe you meant something different or maybe this is a tactic for a different state or, maybe I just misunderstood what you were trying to say.I don't do any investing in California. Far too risky there for pre-foreclosures because of the registration law you mentioned.
Most of my pre-foreclosure business is in Arizona and Wisconsin, but I've done deals in Illinois, Texas and New Hampshire as well.
I advise anyone looking to do pre-foreclosures to stay away from California, Maryland, Washington and Oregon. Maryland, for example, has a law prohibiting investors from contacting homeowners in foreclosure once they have 30 days or less left until the auction date.
I've closed a handful of pre-foreclosure deals where the lender advised me to bring the reinstatement in the form of a cashier's check to the courthouse steps and hand it to the auctioneer. The auctioneer called the trustee to verify and then cancelled the sale. Doesn't happen often, but it does happen.
- Investor · Campton, NH · Member since 2010 · 285 posts · 143 votes2y
Quote from @Kearsten M Higgs:
Quote from @Marty Boardman:
Quote from @Claude Diamond:
Quote from @John Slater:
I’m learning some states have laws against door knocking pre-foreclosures/distressed homeowners. I see a lot about “equity skimming” which is very specific and doesn’t mean every investor is looking to skim because they door knock.
Which states can you not door-knock? How do agents get around this? And, are there any exceptions around door knocking pre foreclosures on those states?
Hi John, I was just thinking to myself why anyone would want to door knock. I love direct sales but it seems to be door knocking for leads or sales is the proverbial "needle in the haystack" style of marketing. I personally like to use attraction or content marketing; better use of my time, less rejection (which takes a psychological toll on you) and higher quality leads. I get fresh leads everyday by posting quality, non commercial contemporary content on a daily basis.
If you're door knocking pre-foreclosures this is NOT needle in the haystack. As long as you scrub your list and confirm the homeowner still has an active foreclosure pending, you are knocking on the door of one of the most motivated sellers on the planet. I prefer that over direct mail, text message blasting or bandit signs. I'd rather talk to 5 motivated sellers per week than 100 unmotivated sellers.
I have a 30-day marketing plan for active foreclosures that includes a combination of personalized letters, text messaging and door knocking and I attempt to make contact with the homeowner up until 24 hours before their auction date. I call the last 7 days before the auction date "hell week" for a homeowner in foreclosure. They're out of time, stressed out and have few options. If you know what you're doing and can stop the foreclosure you'll close a lot of deals.
If the NOD paperwork doesn't have the attorney information, how do you know the property is still in foreclosure and when the auction is going to be held?
- Investor · Campton, NH · Member since 2010 · 285 posts · 143 votes2y
NH has RSA Chapter 479-B pertaining to non-licensees operating in the pre-foreclosure arena........
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