Approaching owners pre-forclosure? - Posted by Shelley

Posted by Irwin on January 26, 1999 at 22:11:02:

There is no pat answer to this question, but remember that the people have a financial problem that is not uncommon in America today. You can approach them in a very matter of fact way, by telling the absolute truth.
You saw the (public) posting of a forclosure notice and wondered if:

  1. They have taken care of it yet,
  2. They have any plans to take care of it
  3. They would like some help in trying to keep (alternative is sell) their home,

There are all kinds of approaches, but the basic one is to get them to discuss their situation rather than you hitting them with your solutions. It always gets around to you proposing your solutions, but first, get them to talk and tell you how they got where they are, and what they plan to do about it.
The wide variety of responses you get will fill volumes in your journal of investing. It’s really a fascinating learn as you go process, so get over there, knock on the door and start learning.
P.S. I think the personal visit works best, but if the property is on the other side of the county, phone first. No sense driving 30 or 40 miles just to find out they filed bankruptcy yesterday.

Approaching owners pre-forclosure? - Posted by Shelley

Posted by Shelley on January 26, 1999 at 21:35:32:

What is the best way to approach owners of property in the early stages of foreclosure (there’s been a foreclosure notice in the paper, but there’s 3 months or so yet before the sale), when the properties are not listed or advertised for sale? I know that one can sometimes work out some great deals with such owners, but it seems a pretty delicate subject to approach, especially when the house isn’t currently listed or FSBO. Would a post card or letter be the best place to start? If so- would it be best to send out “general” I buy houses notices, or is there some way to tactfully word a specific reference to the pending foreclosure? Or, is it best to do the approach by phone call or in person rather than via mail?

All ideas will be greatly appreciated.