Approaching a homeowner in foreclosure...

2 Replies

So I have found a great deal.  It's a home in great shape, brick, worth probably 90K but foreclosure has started (according to zillow and my local realtor buddy).

The people are still in it and nothing has changed at the PVA, it still says the owner's name.

What is the best way to approach this homeowner?

Should I just knock on the door and say "hey, saw foreclosure on your house listing, let's talk!"

Should I ask about a shortsale?  

Should I explain I can help as an investor, maybe save them from foreclosure?  

Or should I just wait it out and see if they get evicted and come in after the bank takes it over?

@Shane Sams

When dealing with sellers in distress, you always want to make it a win-win situation. What is in for them? How can you help them while making some money for yourself? 

Coming on too strong, will make them shy away. They have probably been approached by other high-strung investors. 

Using the word "foreclosure" is also a no-no and will trigger negative response.

Say something like, "I came across your property and I understand that you are going through some difficulties right now. I would like to discuss different options that I could help you with." Options could range from doing a short sale (if they are upside down on their loan,) taking over the payments (subject to), etc.

If you send them a letter, again write in the letter what is in for them and how you can help them. On the envelope, put some trigger line (I place mine underneath the return address,) like "Bail out plans available."

Awesome advice. I really appreciate it.

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