In search of a script with options for obtaining redemption rights. Not everybody is motivated by money ; what else has worked for you in the past?

Question

Does anyone have a list of options they offer current homeowners facing foreclosure for obtaining their redemption rights ?

My goal is to obtain a list of options to offer that accounts for most all "motivators" and "heartburns" that would help convince homeowners to move on.

Josh Caldwell · Answer

Rick H.

you may be correct, Lou Brown may not have invented it, but he is the best current teacher on the subject. I bet that Al Lowry or one or the many guru types who are no longer with us created the technique.  I was just trying to explain that I had nothing to do with creating that technique.

Its sort of an important point, we as modern investors with access to the internet, we dont need to invent anything.  We just need to learn from those who went before us.

To your success

Josh

Rick H. · Answer

@Josh Caldwell Lou Brown did NOT come up with this tactic.

I started working foreclosures in 1978 and I can assure you that this was nothing new at that time, when I worked with Charlie Shuben and Ken Roberts.

I do not suggest using someone else's script but rather to build your own dynamic queries.

Most homeowners are not longer concerned about their credit and are more deeply worried about more fundamental issues in the hierarchy of needs.

Here's how I do it:

Ask them, 'what they want to see happen?'

You are trying to determine if they are looking for either a way to stay or relocate.  This is important because their response will cue you to which direction to focus your further queries on.

If they wanna stay, you focus on probing for what the root cause of the problem is. If it's income, you need to know whether it's temporary or chronic. If the latter, their dreams of remaining are probably not sustainable.

I was once foreclosing on a trust-owned property. One of two beneficiaries asked me if I'd wait long enough until she entered and completed law school. Uhh, NO!

If they want to split, direct the conversation to what it'll be like once the arrive at X and start over, putting your target property behind them.

Your lead sheet can be crafted to asks questions in a certain order and retain in your notes. When you have even a small deal flow, these lead sheets and the notes will be important to refer to later.

Josh Caldwell · Answer

Hey Westin

I attack this problem a bit differant than most.  When I deal with pre-forclosure or NOD type of deals, I simply explain to the potential sellers that I can save their future cedit, and even help their current credit, but they are going to be leaving the house when I do.   That is my offer to them, debt relief, and credit protection.   I talk about all of the things that will either cost more of become impossible like buying that next house in the near future.

Then what I do is I create a trust for them.  You can do this for estate planning.  I make them the benificiary of the trust and even notify the back.   I become the trustee, so the bank is notified that I will be making the payments as such.  No due on sale clause is triggered.  Then a few months down the road I replace them as the benificiary.  Its all in the legal contracts.

I hope that helps

Josh

Rick H. · Answer

@Kaitlin Purple Welcome to the BP forum community!

I suggest you post your query in this or another section since thus is an old, stale thread.

You might be able to find a sample lead or "intake" sheet elsewhere on this site or from some at a local REIA club meeting. Essentially, you ask your questions in a certain manner in order to complete your own form, much like you would ask to complete an application or a questionnaire.

Essentially, if you were talking to someone about their house, what information do you need to know? You'd want to know their name, contact info, property address, loans and liens against it, etc.

The point of having your own script is to get the info you need without sounding like you're like you're interrogating them.

Kaitlin Purple · Answer

@Rick H. Can you elaborate on the latter section of your response? Very helpful, but I have to admit I was a little lost with some of the terms!

This section:

"If they want to split, direct the conversation to what it'll be like once the arrive at X and start over, putting your target property behind them. Your lead sheet can be crafted to asks questions in a certain order and retain in your notes. When you have even a small deal flow, these lead sheets and the notes will be important to refer to later."

I'm just starting out and am trying to understand what to say to homeowners and how to direct the flow of conversation confidently. Any tips, template, or workflow/ advice?

Thank you!

Kaitlin

Josh Caldwell · Answer

I take over their payments, like a subject-to purchase, but there is technically no transfer, as far as the bank is concerned. The current owner places the property into trust. Then I change the benificiary, which is worked out as part of me talking over the debt.   Did I explain that well?

Lou Brown is the genius who came up with this idea, I just model what he does in these situations.

To your success

Josh

Westin Hudnall · Answer

@Josh Caldwell

Very interesting and clever angle.

Are you saying you make their payments for 3-4 months on their behalf to get their current credit back on the right track before purchasing from the bank ?

Or are you saying you essentially take over their mortgage as the beneficiary ? If this is the case are you allowed to sell the property any time you would like and/or buy the property any time you like In your name through s traditional purchase/closing ?

In search of a script with options for obtaining redemption rights. Not everybody is motivated by money ; what else has worked for you in the past?

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