Would you call up a stranger and ask them if they have a drinking problem?

Would you call up a stranger and ask them if they have a drinking problem? Probably not.

On a national average, 10-20% of our pre foreclosure records have phone numbers compliant with the do not call regulations. In some locales, it’s much lower.

The reality is landlines are becoming increasingly obsolete as more and more people – especially younger people – use mobile devices. The overwhelming majority of those families that actually have a house phone are on the Do Not Call List. Of those that have a DNC compliant phone number, many of them are just bored people that like talking to sales people!

While the phone can be a good follow up device, I don’t think that the telephone should  be used by itself as a stand alone marketing vehicle – our pre foreclosure list shouldn’t be a purely telemarketing list to be dumped into a dialer. At best, homeowners that have missed a mortgage payment are probably too embarrassed to admit that there is a problem over the phone to a stranger that they know nothing about. At worst, they might think that you are a vulture looking to swoop down and profit from their misery.

Would an alcoholic admit that they have a drinking problem to someone that calls them up out of the blue? It’s probably the quickest way to get the phone slammed in your ear. Call up a stranger and ask them if they are late on their payments and you will get a predictable response, I guarantee it.

I’m not saying that there is no value to calling homeowners that need your help. I’m just saying that it is most effective when used in parallel with other marketing vehicles such as direct mail and e-mail.

Having introduced yourself through other offline and/or online media, you have more of a license to call a troubled homeowner to offer your help.

“Hello, Mrs. Smith?…”
“Yes, this is Mrs. Smith… who are you?”
“I’m Randy Jones… I sent you a letter last week…”
“Oh, yea, I got your letter in the mail…”

Since the distressed homeowner knows you, or at least knows of you, they are more receptive to talk to you over the phone.

In my view, the phone can be a great follow up device to warm a lead after your initial presentation, be it a post card, a free report, a knock on the door, or a fortune cookie that says “Save your home. Call me.” In my view, you should only call a distressed borrower after they are familiar with you. Familiarity builds credibility, and in turn builds trust.

Only when they trust you – or at minimum know of you – will they admit there is a problem. Marketing has never meant to be and never will be a one-step process such as picking up the phone and blowing through phone numbers.