All,
I just sent out a big group of pre-foreclosure letters to try and spark some interest. I want to make sure I am prepared for calls if/when they come in.
Does anyone have an “application” that they use? Or do you just kind of wing it as the conversation goes? I have a fairly good grasp of what I need to know, but I do not have it any kind of format. Anyone have anything they can share that they use?
Thanks!
Mark
What do you want to accomplish when they call? You might consider writing down some talking points so that you control the conversation and get where you want to go. All of this should be a part of your marketing plan and needs to be well though out. It had better be more than " I wanna buy your house cheap". That is definately not what the homeowner wants to hear.
You need to have a script and stick to it or you will be wasting your time with a lot of unmotivated homeowners just curious about what you do.
I use a script and a prospect sheet to gather info because when you talk to them initally the may not be interested or motivated but sometimes they will call back weeks or months later and you will already have most of the info needed.
Good Luck,
Tony
I have a terrible memory so I use this form so I don’t forget to ask what I need to know. You might need to know more/less but it’s something to go by. Hope it helps.
Name___________________________
Phone # ____________________________
Property Address ____________________________________________
2nd owners name_______________________
Address if different ___________________________
Why are you selling? _______________________________
Relocating/Job Transfer – Divorce – Probate – Out of town owner – Other
Foreclosure – Auction date __________________________
How soon do you need to sell? ________________________
Do you own the property free and clear? _____ Lenders Name _____________________
How much is owed? __________________________
How much are you asking? _________________
Is there a 2nd Mortgage on it? ____________________
Appraised Value/ARV $ ____________________________
How did you determine that amount? _______________________________
Any Judgments or Liens against the property? __________________________________
Any repairs needed? (Anything you can think of)
Minor – Major - Structural
Do you have any idea what these repairs might cost? _____________________________
If I offer you cash and a quick close, what is the lowest price you would consider?
That’s the lowest you can go?
With what you have told me I would need to be around $ __________________ is this something you might be able to work with?
No? How close could you get? $ ___________________
Ok I need to check the numbers, etc. with my partner.
I’ll call back later/tomorrow
Phone # above is good to reach you?
Angelina,
Outstanding!! The only thing I would add is an additional phone #.
Regards,
Dave
Those are good questions. However I take a different tact. I rarely mention buying their house on the telephone.
After getting their name ,address and phone #, I ask two very important questions…the answer to these tells me where I want to go with this home owner. The first question is:
1- What were the circumstance that got you into trouble?
2- How do you see this problem being resolved?
if you ask why they are selling right away they just assume you’re just another vulture trying to profit off their misfortune and immediately their guard is up…this doesn’t get you in a position of being on their side and in their trust. Most homeowners want to stay in their home if at all possible…not sell or lose their home. About 30% of the folks in foreclosure that call me, I can keep them in their home. I charge a fee for that service. It’s the other 70% where you make your real money. Selling in their mind is a last resort. I become a “reluctant buyer”. Mr. prospect, if I could find a way, and I’m not sure I can, and I’d have to talk with my partner and he generally doesn’t like doing this, find a way to keep a foreclosure off your credit record and help you find a new place to live and get you some moving money and truck and some help moving, I’d have to do a real hard sell on my partner, would you consider doing that rather than having your home auctioned off right out from under you and having the sherrif come out and evict you? I do this in person…definately not on the phone.
Bingo!!! can you say short sell?
Thanks David & TN
TN my letter that I send informs them of ways to save their property and “IF” after considering all of their options they decide selling is their best choice, then call me. So either they have questions or they want to sell when they call…
aznewbie,
You’re missing a fundamental rule of marketing. What is you’re desired outcome? Are you using your marketing pieces to sell the deal? If so, you’re wrong and are confusing marketing with sales.
Marketing generates the qualified prospect; Sales wraps the deal up and ensures a payday.
Your marketing pieces work if they generate a response from a prospect.
If you can’t get the deal, then sales has failed.
Make sense?
TNinvestor,
I can tell you’ve done this a time or two or two hundred. 
Regards,
Dave
People get all kinds of postcards and letters in the mail saying the same old thing “We’ll buy your house” “Top Prices Paid” “Fast close” Etc.
Do any of them let the owner know what other options they have?
If it were me in their shoes I’d like some info on what I could do.
Without having to pay for it.
“I THINK” if they decide selling is a better choice, they will call me because I was helpful, not just because I said “We want to buy your house”.
They know I will but I’m not going to hound them about it. There are plenty of deals to be made with sellers that dont have any other choice than to sell. It is fine with me if I help someone save their house and not make any money from it.
This letter I have is not my own, it is compiled from others I have seen but mostly from John Michael. He claims to get over a 16% response rate. So if it works for him it might work for me.
We’ll see…
Hi Aznewbie,
Is it possible I get some Ideas for the letter in which your using ?
This is the letter. If you want the options, google John Michael Investments on the net.
Good Luck!
Dear Homeowner,
I hope this letter finds you doing well. The reason for this letter is that in the Public Records of (Your County) a foreclosure action has been filed against your property. If you are not aware of this I urge you to contact your lender to clear this issue promptly. Your property is at risk.
I am truly sorry if this information is correct and you are facing this unfortunate problem.
Don’t give up though! You have many options that you may not be aware of.
I have enclosed with this letter, a list of options that are available to homeowners facing foreclosure to inform you of ways you can save your property.
If after considering all of your options, you decide that selling is your best choice, please call me so we can discuss how I might be able to help.
I purchase properties in the (Your city) and surrounding areas as investments. I am not able to help everyone, but I will try. If I can purchase your property, I will cover all costs and handle any repairs. Closings can usually be done in as little as 1-2 weeks and there are no fees or commissions for you to pay. I can help stop the foreclosure and keep it off your credit record.
But I can’t help if you don’t call.
Whatever you choose to do I urge you not to wait until it’s too late. Timing is crucial when dealing with foreclosures and whether you choose to try and keep your property or sell it, you need to act fast.
If you have any questions at all, please feel free to call me. There is no cost and you are not under any obligation to sell if you are not satisfied with my offer.
My personal phone # is xxx-xxxx.
Sincerely,
Personally sign it
P.S. If you are not interested in selling right now, please save this letter with your other important papers so that you can call me if you change your mind in the future. Thank you.
Thank you aznewbieI really appreciate you time and consideration!!!
No problemo! ;D
Some good suggestions here already, but I’ll add my two cents. In my opinion, you should never use a script. It makes you sound unnatural and lose credibility.
Also, remember that you’re not just gathering information. You’re selling them on yourself and your solution for their financial problems. Like any good salesman, you need to heighten the pain of their problem and help them visualize the solution. Example:
Seller: I got a letter saying my house will be auctioned on the 31st.
You: What happens if you don’t sell it before then?
Seller: I’d lose everything! (pain)
You: Well, we can’t let that happen. Tell me, what would it do for you if I could buy it from you in five days?
Seller: I could move on with my life and stop worrying about this crap. I mean, all of the letters, phone calls, and everything… I’m ready to be done with it. If you can buy my house that fast, I’d nominate you for sainthood. (solution)
Anyway, it’s not exactly a realistic conversation, but you get the point. Improvise and try to make yourself into the magic solution. Then, move fast.
On a sidenote, a lot of people will tell you that they have other buyers interested or another way out when you ask these types of questions. You’ll be able to uncover who is motivated and who is not.
What options are there when an auction date has been set?
There is no difference as far as options…But you now know when your time is officially up. It sure can create the urgency.
I get 75% on my calls when they have 2 weeks or less until the auction date.
The “window of desperation” and by then they are mighty motivated… 
;D
And what are the options at that point?
The options are still the same, just less time to do it.
Actually, there have been only two real options all along
Lose the house (either to the lender or someone else)
Keep the house (pay all the back due and fees, loan modification or forebearance)
Everything is just a variation of one of these two options.
Exactly right.
#2 is only an option if the mortgage servicer agrees to one of these plans. The closer to the sale date, the less likely they are willing to work with the homeowner.
Pay attentiopn to when the Lis Pendens or NOD was filed. If the foreclosure has been going on for a long time, the Foreclosure Reps are less likely to go the extra mile to stop the sale date. I’ve heard that one a hundred times.