The owner has already fallen behind on their payments to them, and the note is about to balloon.

Does anyone here know who or how I can get a Life Insurance sercured Letter of Credit or SBLC?

I really like getting leads this way because the property owners were essentially coming to me to tell me they needed to sell vs. me having to send out a bunch of direct mail letters or postcards trying to find motivated sellers.

It is probably a balloon loan.

As a wholesaler that scares me.Also, many times the bank that owns the REO wants a proof of funds letter.

You can use a “letter of intent” rather than the regular MLS offer forms for “testing the waters”… You can fax them directly to the listing agent… And when they reply, they can reply back to your Realtor.

So does that make it a “pre-approval letter”?

I send out letters with local phone numbers and I knock on each owner's door, but I have gone form having a phone that rang quite a few times a day to one that's not ringing at all.I have approximately 40 leads I am working now with nothing pending.

If the initial offer is not accepted, is one new letter of intent needed for every subsequent offer made?

because of that I was a little scared that I was doing it wrong.I had made an offer on a house through a letter of intent (obviously doesnt really mean anything) We were meeting the next day to sort out the contract.