Posted by Barry (FL) on October 23, 2003 at 18:37:36:
I the mortgagor sees a HUD with the defaulting mortgagee getting money… there won’t be a short sale.
Pay for their personal property after the sale.
Hope This Helps,
Barry (FL)
I finally decided to knock on the door - Posted by Joe(VT)
Posted by Joe(VT) on October 22, 2003 at 16:42:40:
Well today I finally got up the nerve to head out and start knocking on doors. My brother and I have been working the public records for about 3 weeks now and have a decent list of Pre-Foreclosures. We tried calling but had a success rate of zero, yes zero. Either the phone was disconnected, no one was home or they did not answer. So having read an old post by JT-IN, I decided the only way this was going to work was to get out and find the people. So to all you fellow newbies here was one of my experiences ealier today.
Noon Time: We prepared an envelope to leave on the door just in case no one is at home. It includes our business card and a basic flyer. I listed the text of the flyer below. Very basic and when I started to nit pick it I just reminded myself 99% of the battle is just making contact. There are also a couple of graphics and it is obviously laid out better.
STOP FORECLOSURE!
SAVE YOUR CREDIT!
GET MONEY NOW!
Ö FAST Closing
Ö INSTANT Debt Relief
Ö FREEDOM From Aggressive Lenders
Ö NO Equity No Problem
Ö NO Commissions
Give us a call and we will find a solution to your problem.
Call Toll Free:
1-866-555-5555
ext: 8820
12:30 We head out onto the road-myself, my brother and my 2 year old boxer Murphy. We find the first house which is located on a beautiful lot over looking the lake, but pretty rundown. I step out of my jeep secretly hoping the owner is not home but at the same time making sure my brother thinks I am 100% confident. I knock on the door and here a dog barking like he is going to come through the door and make me his next dinner. Just as I think turning and running would be justifiable, I here a man’s voice yelling at the dog to shut up. Great now he is ticked off and mad, turn and run before its too late. The door opens and I forget what the hell I was going to say. I pretend to look for an address and ask him if he is so and so and if this is 100 lake rd. Yes he replies, great now I know; turn and run. “Well my name is Joe and this is my brother Jon, we are in the business of helping out homeowners who are in foreclosure. We came across this house on a foreclosure list the other day and just wanted to stop by to see if we could help you out in any way.” He replies “Actually we just had it reinstated” Well I figure that is a bogus answer and decide to keep probing anyways. “Well that is great, a lot of the people we meet do not have the resources to get back on their feet.” He immediatley asks how can we actually help them. “Well we negotiate with the lender and try and find a win-win situation. Negotiating is something we do very well.” At this point the wind is blowing off the lake at a pretty good clip and it is pretty chilly out, 40 degrees or so. He is in a pair of shorts and a tee shirt and is looking like he may freeze to death. So I decide to leave him a card and plan a follow up call. As I am fumbling through my wallet the guy notices my dog and mentions how much he likes boxers. So we strike up some small talk about his dog and mine and I find out he is a builder. Work has been up and down and he thinks the winter may be rough. I probe further asking if he has thought about selling the house, which he has. I point out the 800 number on the card and also write down my cell phone number on it. Both go to the same phone but it adds that personal touch. As we are getting ready to turn and go he says, “Well if the loan does not get reinstated I will give you a call” I reply “Please do so and we will find you a solution to this problem”
There were two more visits following this first one that went equally well. What I noticed was each one got easier and that the homeowners almost seemed relieved to see us. I will write about the 3rd visit later on this week as it may potentially be a very good deal. I hope this helps to inspire a couple of people. I know after only 3 visits, my confidence has shot up and I feel like I could approach anyone. Thanks
Re: I finally decided to knock on the door - Posted by ysh(NJ)
Posted by ysh(NJ) on October 23, 2003 at 09:27:04:
Well Joe,
I’m glad you mustered the courage do go knocking. That’s something that I’m planning to do soon, as postcards are great but I wouldn’t think they can compete as far as the response ratio. Keep us all posted. Maybe you can start a weekly thread detailing the highlights of your week’s door knocking. Good luck.
Re: I finally decided to knock on the door - Posted by Kevin-ATL
Posted by Kevin-ATL on October 22, 2003 at 18:26:16:
Hey, thanks for sharing this… this is just the thing a beginning investor like me needs to see for some confidence boosting. I can relate exactly, since I have only just started talking to sellers as well, and have noticed how my confidence is starting to increase each time. I don’t know if you did this on purpose or not, but I’ve heard people say that bringing the dog along is a great ice-breaker, and in your case helped you connect with the potential seller, which is always a great thing.
One warning: If you intend to negotiate with the lender for a short sale, make sure you let the owner know that you actually help him sell his house, to you, and you do this for a profit… otherwise, you could face lawsuits and charges of fraud if the owner later decides that he was mislead and thought you meant “negotiate with the lender to forgive some of his debt.”
Thanks again for the story and I look forward to seeing more… feel free to shoot me an email anytime.
Re: I finally decided to knock on the door - Posted by Joe(VT)
Posted by Joe(VT) on October 22, 2003 at 18:41:49:
Its funny, I was just thinking about this exact point. My plan is to explain the whole process, how I make my money, the assistance I will need from him and why technically they should not be receiving any money. I will fill out the Hud as such and give them approximately 8%-10% for helping out in the process. Unfortunately though, I will be the one paying the taxes on it. But what can you do.