Cold calling scripts for pre foreclosures?
Member since 2019 · 3 posts · 2 votes
Hey I’m starting to do cold calling for pre foreclosures in my local area. Anybody have any scripts they recommend or how I should start out in the conversations?
Hey Brayden, I just replied to an identical post. So i'm going to also post the response here:
If it IS scheduled for Mortgage Sale (aka pre-foreclosure) I say something along the lines of...
"Hey Brayden, this is Kevin calling with ****** about a property at _______. The reason for the call is that it looks like that property is scheduled for Mortgage Sale in the next few months. I was just calling to see if you had any interest in selling it before that point, or if you had taken care of the mortgage."
If they say they have it taken care of, I always ask..
"So its no longer going to be foreclosed on..?"
Just to be sure that they aren't just trying to get me off the phone.
If they ask how you got the info that it was scheduled for Mortgage Sale, just tell them its on public record (it will be public record by whichever city is selling it).
If they are interested. Ask them roundabout how much they owe on the property, just so you can make sure it's worth it to pursue.
Example: If the property is worth 100,000 pre-renovation, yet they owe 125,000 still on their mortgage; it's probably not worth it to waste your time on.
Hope this helps!
-Kev
@Brayden Fimple Be prepared to get hung up on a lot. If you get people to answer at all. Remember these people have bill collectors, mortgage companies and other investors like yourself who are all calling them about the house. There are 2 options, either address the fact that you know they are in foreclosure or call them and dont mention it unless they do. I would recommend the latter...just call and express interest in buying their home.
I've kinda learned how to do this, and it isn't by phone. It is very hard, as Lydia points out. These folks are hiding, and they are in a very bad place. I decided to steer clear of this until I gain a little more experience. I don't want my lack of experience to be the reason why somebody loses their home.
I will say this -- get a pre-FC list and drive those neighborhoods. If you know what zip codes to work, then this can really yield some nice finds. I promise that house isn't the only one on the street that is going through hard times.
It is all about finding those "warm" leads, then you might have a chance getting a real conversation. My best advice, qualify the person first (see if they are a buyer), qualify yourself (who are you and what makes you good), qualify your business model (how is it going to make you/your client money)
Hey Brayden, I just replied to an identical post. So i'm going to also post the response here:
If it IS scheduled for Mortgage Sale (aka pre-foreclosure) I say something along the lines of...
"Hey Brayden, this is Kevin calling with ****** about a property at _______. The reason for the call is that it looks like that property is scheduled for Mortgage Sale in the next few months. I was just calling to see if you had any interest in selling it before that point, or if you had taken care of the mortgage."
If they say they have it taken care of, I always ask..
"So its no longer going to be foreclosed on..?"
Just to be sure that they aren't just trying to get me off the phone.
If they ask how you got the info that it was scheduled for Mortgage Sale, just tell them its on public record (it will be public record by whichever city is selling it).
If they are interested. Ask them roundabout how much they owe on the property, just so you can make sure it's worth it to pursue.
Example: If the property is worth 100,000 pre-renovation, yet they owe 125,000 still on their mortgage; it's probably not worth it to waste your time on.
Hope this helps!
-Kev
@Kevin Whisler Hi Kevin, thats a really good post, so I see two schools of thought one is the method your using, to be forward and ask them outright, another is to call and not mention anything about foreclosure, more like "are you interested in selling" I am also trying to cold call pre foreclosure in my area and trying to figure out best approach, right now looks like all I specialize in is getting the hang ups!! but I am not giving up. Wanted to see how is your success rate with your approach? Any pointers you would recommend?
@Isaac El Preforeclosures are a difficult category. Put yourself in these peoples shoes, your creditors are calling, people are calling you and knocking on your door and sending you letters all saying they want to buy your home. You probably have no where to go, you dont actually want to sell. There is a huge misconception that preforeclosures are incredibly motivated. These people dont actually want to sell, they want to stay in their homes. You have to be able to gently but firmly get them to face the reality of what they truly stand to lose, solve their immediate problem of where they will live and not make them feel like you are taking advantage of their situation.
The ones that hang up on you are the ones who arent motivated.
@Lydia R. So once you find out which houses are in preforeclosure and find out the number of the owner, do you just pick up the phone and call them, or do you have to worry about their number being on the do not call list
Hello all,
I am interested in doing preforeclosure acquisitions, and of course if anyone has a script they can share of how to talk to the sellers and what I need to get from them, then lease let me know. Also another thing I was wondering about is, are houses that are built more recently like in 2015 and up (its 2020 now) also good preforeclosure leads if they show up up on the preforelosure list. Or should I just go after homes that are older like say built 1990s?
Hello all,
I am interested in doing preforeclosure acquisitions, and of course if anyone has a script they can share of how to talk to the sellers and what I need to get from them, then lease let me know. Also another thing I was wondering about is, are houses that are built more recently like in 2015 and up (its 2020 now) also good preforeclosure leads if they show up up on the preforelosure list. Or should I just go after homes that are older like say built 1990s?
I'd be careful cold calling people in foreclosure. You might be running afoul of the law if you do not follow the rules set by the state. Texas has a rule for dealing with people in foreclosure. Many other states do as well.
It is perfectly legal to call people on the foreclosure list in Texas. There is a law that says if you are going to perform a service for the homeowner related to saving their home or credit for a fee, there is a disclosure you have to make. However, offering to buy their home doesn't fall into this category.
Spot on, Becky. How do you open a call to folks on a foreclosure list? Is this call different for you than the typical "just wanted to see if you'd consider an offer on your property there at ________" used for other potential sellers?
I am a realtor I am certified by National Association of Realtors as a Short sale and Foreclosure Resource.
If you were in financial distress who would you want to be calling you ? The solution most people want is just get a little more time. Forbearance has offered many people more time. However, there likely will be many distressed properties coming to the market after this period is over. The good news is with the current increase in prices they may have sufficient equity to sell and get out without going through a foreclosure. So we are calling pre-foreclosures to tell them that the market is favorable to sellers because there is a lack of inventory. However, many people don't want to sell or move or do anything. They just hope the bank won't be able to foreclose. We tell them when we call that we are foreclosure prevention specialist ... and we want to help them find a solution that works for them. Our Goal is to have them understand that we are there to help them. Options may include listing their home for sale, helping put together a short sale package for the bank if it will likely be a short sale, explore lease option or other transactional solution, or sell it for cash. If you are a cash buyer message us and we will send you a deal sheet when we get them.
So Our script is simple:" Hi my name is Richard Anderson, I am with House Finders Realty, I specialize in helping homeowners avoid foreclosure. I saw that your home is listed on the notice of default list and you may be subject to a foreclosure. I am certified by the National Association of Realtor as a Short Sale and Foreclosure Resource. I am calling to see if I can be of service to you? Tell me more about your situation and how I can help you ?.. the rest is common sense, Eventually, asking how much they think their house is worth is also important although you should already know what it is worth, and how much they owe and if there are any liens. We pride ourselves in doing the right thing for the right reason... you know.... do unto others... like you would have them do unto you...
I am a realtor I am certified by National Association of Realtors as a Short sale and Foreclosure Resource.
If you were in financial distress who would you want to be calling you ? The solution most people want is just get a little more time. Forbearance has offered many people more time. However, there likely will be many distressed properties coming to the market after this period is over. The good news is with the current increase in prices they may have sufficient equity to sell and get out without going through a foreclosure. So we are calling pre-foreclosures to tell them that the market is favorable to sellers because there is a lack of inventory. However, many people don't want to sell or move or do anything. They just hope the bank won't be able to foreclose. We tell them when we call that we are foreclosure prevention specialist ... and we want to help them find a solution that works for them. Our Goal is to have them understand that we are there to help them. Options may include listing their home for sale, helping put together a short sale package for the bank if it will likely be a short sale, explore lease option or other transactional solution, or sell it for cash. If you are a cash buyer message us and we will send you a deal sheet when we get them.
So Our script is simple:" Hi my name is Richard Anderson, I am with House Finders Realty, I specialize in helping homeowners avoid foreclosure. I saw that your home is listed on the notice of default list and you may be subject to a foreclosure. I am certified by the National Association of Realtor as a Short Sale and Foreclosure Resource. I am calling to see if I can be of service to you? Tell me more about your situation and how I can help you ?.. the rest is common sense, Eventually, asking how much they think their house is worth is also important although you should already know what it is worth, and how much they owe and if there are any liens. We pride ourselves in doing the right thing for the right reason... you know.... do unto others... like you would have them do unto you...
Sadly, you can be a short sale/foreclosure expert with $130 and 6 CEU's, done online, while you are multitasking. And you can do it with only a 70% pass rate and fail it multiple times. You get a nice glossy certificate that qualifies you to manage one of the most stressful and difficult financial situation of anyone's life.
Ron S you are absolutely right about it being the most stressful and difficult financial situation of anyone's life. I took the course many years ago because I wanted to know how I could help someone in that situation. As an SFR , and you seem to know a lot about it so maybe you are too and know this so for the benefit of others, you are entitled to receive the most up to date information about how to help families in this situation. Hence the name Resource.... not expert but resource. I am not an expert, but after taking the SFR course I was able to be more helpful than before. I appreciate your comments as it is definitely an area that if you don't now what you are doing can pose more harm than good...
I typed in “distressed.house intext “distressed seller in pre foreclosure”” into Google and this is what I got. I guess I’m going to go back to my telemarketing jobs and say when cold calling, remember it’s a numbers game. Also try to turn does cold leads into warm leads at the first chance you get with rapport and listening to them carefully. Lastly try making a website then optimize it with SEO and ads. That’s what I’m focusing on.
What ever else you say DO NOT MENTION THAT YOU MIGHT KNOW THAT THEY ARE IN FINANCIAL DIFFICULTY! That's the best way to get their defenses up and cause embarrassment.
Make it sound like it's a coincidence that you are calling them. If you are considering selling your house, I can offer an easier alternative to going the traditional route of working with a broker. You wouldn't even need to fix anything up!
I am a realtor I am certified by National Association of Realtors as a Short sale and Foreclosure Resource.
If you were in financial distress who would you want to be calling you ? The solution most people want is just get a little more time. Forbearance has offered many people more time. However, there likely will be many distressed properties coming to the market after this period is over. The good news is with the current increase in prices they may have sufficient equity to sell and get out without going through a foreclosure. So we are calling pre-foreclosures to tell them that the market is favorable to sellers because there is a lack of inventory. However, many people don't want to sell or move or do anything. They just hope the bank won't be able to foreclose. We tell them when we call that we are foreclosure prevention specialist ... and we want to help them find a solution that works for them. Our Goal is to have them understand that we are there to help them. Options may include listing their home for sale, helping put together a short sale package for the bank if it will likely be a short sale, explore lease option or other transactional solution, or sell it for cash. If you are a cash buyer message us and we will send you a deal sheet when we get them.
So Our script is simple:" Hi my name is Richard Anderson, I am with House Finders Realty, I specialize in helping homeowners avoid foreclosure. I saw that your home is listed on the notice of default list and you may be subject to a foreclosure. I am certified by the National Association of Realtor as a Short Sale and Foreclosure Resource. I am calling to see if I can be of service to you? Tell me more about your situation and how I can help you ?.. the rest is common sense, Eventually, asking how much they think their house is worth is also important although you should already know what it is worth, and how much they owe and if there are any liens. We pride ourselves in doing the right thing for the right reason... you know.... do unto others... like you would have them do unto you...
Hey Richard. What's the process of talking REOs as an agent with clients with loaded cash?
Homeowners in foreclosure are:
1. Angry
2. Confused
3. Apathetic
4. In denial
And sometimes all 4! I've found when approaching a homeowner in foreclosure it's important to build rapport, be a good listener and structure a win-win deal. I don't have a "script", just a rough outline. Every situation is different. When someone is in foreclosure it's typically because of job loss, divorce or medical bills. You've got to show empathy and be able to explain how the process works so they understand the urgency of the situation. If you can't convey this message then the homeowner will most likely choose to work with another investor or bury their head further into the sand and lose the house at auction.
I am cold calling pre-foreclosures in South Florida and I'm getting a lot of voicemails. Does anyone have a message that they leave to get people calling back?
I am cold calling pre-foreclosures in South Florida and I'm getting a lot of voicemails. Does anyone have a message that they leave to get people calling back?
Same here Stefan! I would love to know what scripts some of you are using. Lately, I've just been asking if they'd be interested in selling their property, provide my contact info, and leave it at that.
I am cold calling pre-foreclosures in South Florida and I'm getting a lot of voicemails. Does anyone have a message that they leave to get people calling back?
Same here Stefan! I would love to know what scripts some of you are using. Lately, I've just been asking if they'd be interested in selling their property, provide my contact info, and leave it at that.
Don't ever leave a voice mail saying you are calling because they are in foreclosure. You never now who may be listening.
It's very simple really, treat them as you would any other prospect. Be cordial, friendly, warm, nice and say something to the effect of "Hi, we're wanting to buy a property in the neighborhood and just calling you and your neighbors to see if you or someone you know has an interest in selling? You can reach me at (give name) give phone number twice. Thanks, I look forward to chatting with you.
I have many times found out in the process that the other owner didn't know they were in foreclosure. Sad, but true. One guy didn't find out what was going on until they were in closing and he looked at the HUD. That closing took 4 hours. Needless to say, he wasn't happy.
The closing agent left the two of them in the office after she found out he didn't know, closed the door and when the yelling stopped, a couple of hours later, went back in, worked with them and after another hour or so finally got the closing completed.
Never assume anything when you are working foreclosures, but don't get into their business either. You need to know if they will sell, about how much they are behind, when the sale date is, who the lender is, have they done a loan modification before, and many more things like that.
Oh, by the way, the reason they were in foreclosure with the two of them working nice paying full time jobs . . . she had a gambling habit.
I am cold calling pre-foreclosures in South Florida and I'm getting a lot of voicemails. Does anyone have a message that they leave to get people calling back?
Same here Stefan! I would love to know what scripts some of you are using. Lately, I've just been asking if they'd be interested in selling their property, provide my contact info, and leave it at that.
Don't ever leave a voice mail saying you are calling because they are in foreclosure. You never now who may be listening.
It's very simple really, treat them as you would any other prospect. Be cordial, friendly, warm, nice and say something to the effect of "Hi, we're wanting to buy a property in the neighborhood and just calling you and your neighbors to see if you or someone you know has an interest in selling? You can reach me at (give name) give phone number twice. Thanks, I look forward to chatting with you.
I have many times found out in the process that the other owner didn't know they were in foreclosure. Sad, but true. One guy didn't find out what was going on until they were in closing and he looked at the HUD. That closing took 4 hours. Needless to say, he wasn't happy.
The closing agent left the two of them in the office after she found out he didn't know, closed the door and when the yelling stopped, a couple of hours later, went back in, worked with them and after another hour or so finally got the closing completed.
Never assume anything when you are working foreclosures, but don't get into their business either. You need to know if they will sell, about how much they are behind, when the sale date is, who the lender is, have they done a loan modification before, and many more things like that.
Oh, by the way, the reason they were in foreclosure with the two of them working nice paying full time jobs . . . she had a gambling habit.
Woah. Sad story. Thanks for the info Mike; I hadn't thought of that scenario. I'll definitely be putting this into practice instead!
@Brayden Fimple I dont have any scripts but I have been in RE sales and Investments for 30 years. I would be quick and concise. lead the person and control the conversation with questions that will stay on course with your end goal. 1. Find motivation 2. Timing 3. Problem solving
The most important is to come from a place where you are trying to help them. If you can solve problems for people you can feel good about what you do and also make money.