Approaching a preforclosure

5 Replies

I have a buyer client who is very interested in a particular house that is in preforclosure. I spoke with the forclosure attorney, and was told that it is still at the point where the homeowner can make a deal to sell. I am trying to write a letter to the owners and am blanking out. Can anyone help me to express sufficient sympathy that I don't sound heartless, but not so much that I sound like a sleazy salesman?

Also, for those who are familar with preforclosures - does this sound like it would have to be a short sale? How does it differ from a regular sale - ie., what do I need to be careful about in order not to mess this up?

Short sales and regular sales differ greatly. You would know if it's short by knowing how much debt is on the home and what the home is worth. You can door knock or send them a mailer. I generally would suggest coming from a place of trying to help them accomplish their goals from the homeowners perspective. Usually they want a combination of the following: more time in the home, to keep, reduce liabilities, or to get money.

Door knock preferably, or call.....forget the letter. If there is equity, it is like any other sale. If s short sale, you are on s short clock.

Honesty is the best policy.  If you actually have client who wants to buy the house, you already have an "in" that is a good leg up.  Definitely door knock:

"Hi, I'm a real estate agent and have a client who wants to buy your house.  Are you interested in selling?"

If you didn't have a client, there are two approaches:

"Hi, I'm a real estate agent/investor and I want to buy a house on this street.   Are you, or do you know anyone who is, interested in selling?"

My approach is even more direct:

"I'm a real estate broker/investor.  I see you are having trouble with your mortgage.  Do you have that taken care of?"

In the end, it doesn't really matter what you say.  The key components are to disclose the license (if any) and that you can help them sell their house.  There will be a percentage who slam the door in your face and there will be a percentage who invite you into their living room and tell you their whole life story.

Good luck!

Oh.

And follow up.  Sometimes it takes a few knocks to get them to open up to you.

Remember that they are scared and vulnerable and most people contacting them are looking for money.

If property alredy schedule for auction can we still consider as pre foreclosure  and try to contact the owner?

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here