Direct Mail and Preforclosures
Ok, forgive my ignorance, but I am working on unconventional methods for finding deals (i.e. direct mail and preferclosures). But i have a few questions...
Preforclosures...
-When the foreclosure auction notice is posted in the papers (2-4 weeks prior to auction around here) is it too late to pursue a purchase before auction? If that is on a case by case basis how can I know?
-When the notice lists "Other interested parties", does that mean there are additional liens on the property?
-If I pursue the house at auction, can I have a title search done prior to auction? If not, how do I protect myself against additional liens against the property?
In the direct mail area...
-What is the best approach for first contact? (I am planning on starting with hand written Yellow letters). Keep it bare bones - "Name, I want to buy your house, contact me at..." or should I try to list some benefits that may apply to them in the transaction?
-Should I get a response, what are the most important pieces of information to gather before making an offer? Obviously the payoff on the property, any additional liens, known major repairs, taxes owed, and my own assessment while there. Am I missing anything?
I am about to jump into direct mail with both feet regardless, but I would prefer to be as informed as possible before I do.
Also, it is important to me to be ethical above everything else. I don't want to exploit anyone no matter how much I stand to gain from it. If I cannot serve or bring value to the seller in some form I'm not sure that I want any part of the deal. I would love to hear some insight or opinions on that from some experienced investors.