Are you chasing sellers in foreclosure or sellers with equity?

Question

Hey Guys,

I'm filtering out a list for mailers right now, preparing a mailing campaign for January forward, and am wondering if you guys spend dollars chasing pre foreclosures or sellers with equity?

My thought is that pre foreclosures (short sales) will be reluctant to call due to the nature of their situation and if they do, it's a 3+ month deal.

With sellers that have equity, they may be unrealistic in price, or most of them will be.

What are you guys doing out there? Thanks!

Michael Quarles · Answer

In short

More contracts from pre foreclosures bigger contracts from equity. IMHO one should market to both. Understanding that the short market allows for the really huge equity pay days although I've had people make 100k plus on a short however my biggest has only been half that.

The bigger key is that dialog is different for both. Motivation is also different as well as financing options.

Try to find a great mix for your market. Btw one of the great things about absentee sellers and pre foreclosures is that you don't have to knock on the front door.

Christian DeBerry · Answer

Good Morning All, Just joined this morning,would you guys be interested in finding a home for the deals you find that have no equity,as opposed to the deals you bid on and capture?

Steve Babiak · Answer

You are making the assumption that anybody facing foreclosure has no equity. Although this is true in the vast majority of foreclosure situations, you have to be aware that properties do get sold to parties other than the lender at the foreclosure auctions - usually because the debt being collected is (well) below the property's market value, which means that the property held equity for the defaulted borrower!

Gary Parker · Answer

Mostly Equity with the occasional short sale or lease opt.

Are you chasing sellers in foreclosure or sellers with equity?

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