I want to market to pre-foreclosures but don’t quite understand how this can be done in time. I would like to get some ideas of how other people are making deals happen in this area. Currently, I’m in TX and get a list which is published 20-30 days prior to auction. Is there some way to get this info BEFORE it’s published so there’s more than 20-30 days?
I’ve read various things about direct mailing to pre-foreclosures, but how can someone have time to direct mail to someone that is losing their property in 20-30 days? Assuming your direct mail does get a response right away, you still have to have time to close… Any input is greatly appreciated here!
I see 2 feasible ways of marketing to these pre-foreclosure properties. Calling and door knocking. With calling I can’t find people’s phone numbers and the ones I have found aren’t picking up or calling back. This pretty much leaves door knocking…
Can you guys tell me again how you’re doing these types of deals and where my logic is flawed here or what I’m doing wrong and need to change??
Banks send a list called “NOD” (Notice of Default) out to Title Companies with the hope that the people on the list will be marketed to by investors, loan officers and realtors. If you have a title company or realtor that gets these lists, you can start with that. The borrower is added to this list the minute they are 30 days late on their payments, so you’ll be able to get to these homes way before the 20 days before auction.
The only downside is that these poor distressed homeowners are bombarded with marketing. You will have to be really creative to get their attention. However, the lists are getting bigger, so it can’t hurt to try.
Yes in Texas youre screwed when it comes to a resonable notice period… What is it 21 days… Which is why you should not be marketing to Pre-foreclosure… Market to houses irrespective of a foreclosure status… In your message say you buy houses even those that are behind in their mortgage or in foreclosure…
Most local newspapers get feeds from data providers that tell them the areas that have a high concentration of foreclosures and those are the areas I would blast…
As well as what Michael said, you should check into pre-NOD lists. These will tell you when someone is 30-60-90 days late on their mortgage. I’m not 100% sure if they have those in TX, but hopefully those can help.
You can also target a direct mail campaign to homeowners who are behind on their mortgage payments (90, 120 + days). I’ve worked with many investors that use this strategy as part of their marketing plan.
I use a company that gets pre-NOD leads (30- and 60-day lates, i.e., people who are headed for preforeclosure but haven’t yet been served the NOD or Lis Pendens yet). I also get preforeclosure leads fresh from the courthouse.