Advice please! Preforeclosure list criteria

[Alida D.]

I need to know if when getting a list together of homeowners in preforeclosure should I pull only those names who have equity?? How much equity? 30%? 40% is that too high? Wouldn't the banks re-fi them if they had this much equity??

I want to do a direct mail piece and I need to know the smartest list to pull becuase my funds are limited.

Thank you

[Justin S.]

It depends on your strategy.

If you want short sales, then pull houses with no equity.

If you want sub2s, lease-options, etc. then you'll need/want some equity. Most investors buy at 60-70% of FMV, so you should base your list on that.