Is reaching out to owners with NOD filed in recorder's office a good strategy?

Question

Every Notice of Default in my county is public the day it records. I started to pull them daily.

So are these owners the best leads in real estate, or the most over-mailed people in the county?

I'm a licensed agent in a small Northern California county, and I haven't contacted a single NOD owner yet. Before I do, I'd like to learn from people who have.

Here's what I'd like to consider:

• Timing. In California, at least 3 months must pass between the NOD and the Notice of Trustee's Sale. Is the NOD the right moment to reach out, or do owners only pick up the phone once a sale date is set?
• Tone. Someone who just got a default notice is stressed and probably embarrassed. What does a first contact look like that doesn't come across as a vulture circling?
• Rules. California has the Home Equity Sales Contract Act (Civil Code 1695) and the foreclosure consultant law (Civil Code 2945). If you work NODs here, how do you stay compliant?
• Results. What response rate have you actually gotten from NOD lists, and how many closed deals came out of it?

Timing. In California, at least 3 months must pass between the NOD and the Notice of Trustee's Sale. Is the NOD the right moment to reach out, or do owners only pick up the phone once a sale date is set?

Tone. Someone who just got a default notice is stressed and probably embarrassed. What does a first contact look like that doesn't come across as a vulture circling?

Rules. California has the Home Equity Sales Contract Act (Civil Code 1695) and the foreclosure consultant law (Civil Code 2945). If you work NODs here, how do you stay compliant?

Results. What response rate have you actually gotten from NOD lists, and how many closed deals came out of it?

If you tried this and quit, I especially want to hear why.

Jay Hinrichs · Answer

Diana CA OR WA have very strong laws against equity skimming and taking advantage of those in default..

Jay Hinrichs · Answer

non licensed in Oregon so I was an investor at the time. still have my CA brokers license I got in 1975 though so I keep up on CE and had a brokers license in OR and still get the bulliten from DRE again to stay up current. in the major metro area at least in our day. once someone had an NOD filed the owners got no less than 100 direct mails and numerous phone calls.. We did none of that we knocked doors like I said 5 days before the trustee sale and many times we saved it the day before or the morning of.. it was for sure hair on fire.. And of course we could prep our docs and record them ourselves get the seller to a notary.. Give seller some cash and off we went. Buying without title insurance had some risk.. I think I lost 50k on one deal but I think it was just that one.. And many of these we took sub too so we just brought them current paid monthly until we could rehab and resell we had no interest in renting these. It was all about making the developer spread. Then the laws changed in 07 08 and we stopped..

Jay Hinrichs · Answer

I did this in Oregon for years.. NOD list is way to early in the process I found out.. the time to buy these is 24 hours to 5 days before the actual trustee sale.

not sure what small county your in in Northern Ca I started my RE career In Napa Sonoma and Lake county did majority of the distressed stuff in Lake county.

Diana Khan · Answer

@Adrian Teo, I think you’re asking the right question by looking at the rules before deciding how to approach these owners. I wouldn’t build the outreach around timing alone. I’d first make sure I understood exactly what I could say, what role I was taking in the transaction, and what requirements apply before contacting someone who is already in a distressed situation.

From the real estate legal side, I’ve seen how important it is to get those pieces clear early, especially when someone may be both a real estate professional and a potential buyer. I practice in Maryland, not California, so I would have a California attorney familiar with distressed property transactions review the approach before sending anything out. I like that you’re thinking about the owner’s situation and tone instead of treating an NOD list like any other lead list @Adrian Teo.

Divin Kanyama · Answer

@Adrian Teo NOD owners can be motivated, but they are also among the most heavily contacted and vulnerable leads. Reaching out early may give an owner more time and options, but the first contact should be calm, transparent, and focused on listening—not creating urgency or promising a rescue. As a licensed agent, clearly disclose your role and whether you are seeking a listing, representing a buyer, or pursuing the property yourself. California’s rules are technical and fact-specific, so have a local real estate attorney or knowledgeable broker review the outreach, contracts, cancellation rights, and compensation structure before starting. Results will likely depend less on the list itself and more on follow-up, credibility, and whether you can offer a realistic solution. Track contacts, conversations, appointments, and outcomes so you can decide whether the channel is worth continuing.

Adrian Teo · Answer

Thanks for that explanation Jay. That's very insightful.

Adrian Teo · Answer

Thanks for your reply Jay. Did you ever represent the owners? Or were you on buy-side only?

Is reaching out to owners with NOD filed in recorder's office a good strategy?

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