Hi All.
I have been sending mails to pre-foreclosure owners and received few replies. When I received the phone call from the owners, I usually ask about property such as mortgage (how much they owe, how long their payments are behind etc.), property value (this is owners opinion and I use for my info), repair etc.
Although most owners mentioned that they want to stay the house, I kindly mentioned that I may give them some options, but they have to move out the property sooner or later.
OK, let’s say they understand (I really don’t want to take a chance here. There may be some option such as L/O but if owner can’t afford to pay their mortgage, how come they can pay me monthly installment???)
So I usually mention about short sale. I say that may be I can negotiate their lender to pay off mortgage (no promise here). Then, owners usually ask if I will be able to pay all the money they owe from bank. So I simply reply that maybe bank will discount the amount but I can’t tell how much or what %. They usually understand, but after I mentioned bank may be discount the pay off amount, they tell me if I can pay to the bank less than they owe and they will lose the house, they would like to list the house through realtor so that they can pay off debt and get some money from the selling price.
I have talked 3 owners so far, but all the conversation ended when I mention short sale. They don’t like the idea that they have to lose the house and won’t get any money.
Do I miss something or the owners are just NOT motivated? I mentioned that I may pay you some money for them to move out next place but I can’t tell them yet.
Also, when you talk to the owner and s/he ask something like "I don’t know you and your company. So how can I sign any papers (such as release form), how do you deal with them?
I have read and learn many REI materials and start taking action. I know that I need more practice and experience.
Any investors opinion and advise are appreciated.
Thank you!
;D