I have been contacting owners via phone and knocking on doors only to have owners get upset and shut the door or just not want to talk about their foreclosure situation. Can anybody give me some solid advice on how what to say to these owners and how to approach them. Any help would be greatly appreciated.
What is your current approach?
I usually when knocking just start out by saying Hi my name is I am an investor who is looking to purchase properties in this area and was wondering if you knew of anyone that was looking to sell their property.
that is one approach. or i just start out by saying hi my name is and I am a real estate investor that recieved your name from the county records and noticed that your home is in the process of foreclosure. My company helps out individuals like yourself by finding a solution that helps out each of us. Would you like to speak more about this?
that is all that I have been able to come up with, depending on their response I go from there.
I’ve heard from the “gurus” that you never want to use the word “foreclosure” when talking to the homeowners. I say either that they have a pending problem with their property, or their property is scheduled to be sold.
Cray,
I am new to this form but have been in Real Estate for a while.
I would like to break into the investment side of Real Estate rather than simply representing the Buyer or Seller.
I may have a few suggestions that may help.
Firstly, I might reconsider the Phone approach unless you have verified that these owners in the process of Foreclosure are NOT on the Do Not Call List. It has become a problem with contacting FSBO’s and other potentials since it is now illegal to contact or solicit individuals on this List via Phone. (Check out the site www.donotcall.gov for more info).
Knocking on the door may also seem intrusive to some and may have a negative impact on the owner. There are a number of books out there with great suggestions on getting yourself that first meeting and even go over some of the things to say once you have your foot in the door. Look at the “Make Money in Short-Sale Foreclosures” by Chantal Howell Carey and Bill Carey. It has a section called Dealing with owners in Financial Distress that I think covers most of what you are dealing with now.
I don’t know that I believe in NOT using the Foreclosure word.(The “F” Word) :-X. I myself have gone thru a Foreclosure situation many years ago and would have welcomed someone that could have shared some insight into my options. Most owners in distress DON’T know there options. I might have considered a Deed-in-Lieu of Foreclosure if I had known about it or might have been happy short-selling under the proper circumstance.
My suggestion is to approach the Owner with sympathy for their situation, letting them know that you are not only an investor but someone that can show them all the different options they might not have known they had. Once they understand that you are there to help them and not just turn a quick profit on their misfortune, they may be more receptive to who you are and what you do.
Just a thought! 
Bajamas
There are many ways to approach them. The key is finding one that you are comfortable with. Depending on the owner there may not be ANYTHING you can say that will get through to them. One thing I am careful of is stating that you are “here to help them.” Are you willing to “help” them even if you don’t make a profit? I would guess the answer is no. So, you are there to purchase their house. Now, this may infact be something that will help them out of a bad situation but you are not doing this out of the kindness of your heart. You are a business person, looking to make a profit, not at someone else’s expense, but trying to find that win/win situation where you can make a profit and the owner can get some relief from the bad situation they are in.
You are at least knocking on doors and making contact. That is more than most ever do. Keep at it and best of luck to you.
For whatever reason for the past month it seems that everyone I have been coming in contact with real estate wise has stated you need to knock on doors. I tried it once and was terrified. The guy opened the door with a crazy look on his face, I opened my mouth, and he stated not interested and closed the door. I went back to my car and went home.
You have to have thick skin when you door knock. My attitude is let any rejection roll off. That’s because the homeowner’s are the ones in trouble & I have the answer. I don’t try to be pushy at all, just congenial & honest. So if they don’t want to hear it, that’s on them.
Thanks for the imput and answers. It can be frustrating at times but im going to stick it out and see where it takes me. I know that if it is suppose to happen then it will when the time is right. Thanks once again everybody on this board is extremely informative and helpful
Cray, let me know how it works out. I think that rei has some fantastic benefits. Im just starting to realize you have to earn those benefits though which includes pushing yourself. Maybe ill knock on some doors within the next month.
I definetly will let you know how it goes. I have some buddies that do it and are very successful at it. It is the only way they contact the owners that are in preforeclosure, they wont call and wont send out letters or postcards, just knock. I think if you are confident enough and sincere enough then it will work. As they always say the worst that can happen is that person says no. And there are 100s more just like him.
I don’t really believe that any of these poeple in foreclosure or pre-forclosure REALLY want to be where they are financially! I would approach the house with the attitude that I may be the ONLY contact that they may have that can offer some type of assistance. What have you got to lose? Without some guidance, the foreclosure is imminent! Their situation is NOT going to get better by itself unless they already have a plan to bring the arrears current (I don’t believe I know any of these people).
So knock with confidence, kindly let them know who you are and what you do. I would approch the conversation NOT as a pushy salesperson but someone that could introduce them to their 8 options! Hand them a card with all your information and let them know that you would like to sit with them as a free consult to reivew these options. No Cost to them and it doesn’t have to be right now. Ask them if they know what all their options are. Maybe ask “Would you like to know more”?
Try to remember that without you knocking on their door there are probably only 2 options that they have…a huge credit strike and loss of equity OR me waiting for you to leave so I can speak to them!! :o
Bajamas