Approaching The Seller, NoD Filed
I have a lead on a home owner who has had an NOD filed. They owner wants out, and fast. My initial perception (which is word of mouth) of the situation is positive, but I want to find out more.
I am going to arrange a meeting with the seller, and have the following questions (given to me by my new found mentor and possible partner):
-Date the NOD filed
-Loan amount on the first
-Back payments on the first
-Lender on the first
-Loan amount on the second mortgage (if applicable)
-Back payments on the second
-Lender on the second
-Are there any liens (IRS, mechanic, property taxes...)? Amounts.
-What's their perception of the property value?
-homeowner's idea of the value
Is that complete?
Also, this would me first attempt at purchasing a property. I want to approach this person in a professional demeanor, but I don't want to feel to stuffy. This is this persons home, I don't want them to think that it is ALL about the money to me. Any suggestions on how to approach this person would be most accepted.
Japher,
Glad to meet you.
Is that complete? Completely un-professional to ask all those questions and then expect to get honest answers.
Do your due diligence, then you will already have the answers to the majority of your questions and you will look like you know what you are doing in front of the seller.
John $Cash$ Locke
I agree you can get the answers to most of you questions at your County clerks office. If your lucky to be in a county like mine, just go to your clerks web site and get the info online. I would definatly know the answers to those questions before meeting them. Then you will know if they are trying to play with you. Use this site to see what your area has online:
http://www.statelocalgov.net[ Edited by wpruett on Date 02/03/2004 ]
Hi Japher,
Certainly get that information from public records before meeting with your homeowner. If you have more questions than that, jot them down and review them before going into the house. Instead of asking a homeowner a list of questions like they are on trial, slip the questions into normal flowing conversation. As you act calmly and the homeowner feels non-threatened, you will be amazed at the additional information that they will tell you.
Immitate like a Duck:
Keep calm and collected on the surface, but paddle like the dickens underneath!
Best of Success!
BAMZ
BAMZ,
I just love your Duck analogy...
I'm gonna print that one up and hang it in my office. Very inspiring.
Thanks.
[addsig]
Thank you, that's what I thought... I don't want to seem pushy or about the money, and rub it in the poor guys face. Does sound unprofessional to ask those question.
Unless your info is rock-solid and you know they want OUT NOW, be careful and compassionate. Good first question; "what do you want to see happen with your house?" If a homeowner really wants to stay, I put on my "foreclosure consultant" cap and offer options (refi, deed to relative for loan, negotiate with bank, cash out retirement $, credit card advance, file 'answer' to NOD, which can buy an extra month, etc.) for keeping it. Maybe it's beyond any of those options, and maybe I lose a deal or two in the process. But I sleep and feel better when I know my experience and advice may help someone keep their home if that's what they really want. If they don't want to go, the deal will be painful all around anyway and could go sour. And if the problem recurs, who do you think they'll call first?
That is a good first line. I have evolved to: "What are you trying to accomplish?" This seems to get people to cut to the core right away and I get a short, to the point answer, like, "I want to stay." or "I know I have to leave, but I need some traveling money. ".
Good investing.
Mitchell Goldstein
[ Edited by Mitchell on Date 02/04/2004 ] [ Edited by Mitchell on Date 02/04/2004 ]
All very good advice, but remember all the people in this world are different. Each one responds to certain words and stimulae. Watch as you start in. I try very hard to creat an informal helpful atmosphere.
Your true position should be as a consultant to help them achieve whatever it is they want to do. If it cannot be done then a slow careful examination of the wishes and the ultimate realization that this wish is not possible. then on to the next in decending order.
You must develop a feel for this and in time you will. The first part is the adjustment as you slide into your helpful non threatening role. You give the advice as it is required. Whatever you advice be prepared to run that path all the way to conclusion.
One thing be prepared for is the non rational response. Remember these are people under enormous pressure. Their way of life is in danger and they may lash out on some strange tangent. Just hang in there and steer them back into reality and the solving of the present time problem.
If you find that the end result is a mutual relationship with them for some future profit. Evaluate carefully and document even more carefully.
Divisions in ownership. Future notes or participations in title etc. Must be done with great care and defensively. In your documentation there can be only one interpretation of the intent of both of you. Be redundent in phrasing if necessary. But get the full contract into writing.
Use your senses fully. listen to any little voices that pop up from your psyc. Read yourself as well as the person you are trying to help.
Sincerely, as should you. Lucius
Lofus,, you rock!
That is exactly what I wanted to hear, so I guess it makes it truth... Thank you.
To the rest, whom I thanked earlier, I still thank you for your opinion... and while it may work in your cases I do feel it is wrong. The problem HAS to be addressed. Now, I am not talking about a cold call or just addressing an NOD which you may of thought. What I had is someone who said "hey, I had a NOD filed on me what should I do?" I think in that case these questions are valid.
Not only this, but I think these questions are valid no matter what the situation. It DOES come down to money and the sooner those who are having problems with money realize that IS about money, the sooner their problem will be fiixed.
I approach these "customers" with the uptmost sympathy and professionalism. Yet, not to get to buisness, to have these thing before hand, is BS... You NEED to ask these things, but with an air of consideration for their situation...
I can't help unless I know what ails them. And I can't help unless I know what they want from the whole situation.
Thanks again Lofus.
(please argue this topic, I would like a good arguement... Somthing I rarely see on this site, but really gets you thinking. I understand that every situation is different, but I still stand the ground that asking the right questions is essential to landing the deal and the trust....)
Thank you all
Hi Japher,
when talking with owner who are going into foreclosure, I definately ask those questions. I agree with John that it may seem unprofessional. I do not agree with the viewpoint that seeming unprofessional is a negative. Notice I use the word "seeming". Yeah everyone can get the information, but investors out there, how much due diligence would you complete on a deal you aren't sure you're going to get?
I'd like the owners to feel comfortable with me and not feel like they are going to be taken advantage of.
Also, when the people answer these questions it will reaffirm the situation they are in, making it harder to deny the fact they will lose their home if nothing is done.
I can see both sides of the coin on getting the number yourself or asking the person for them. Either way you're going to have to get the real numbers, and I would check the number that the owner gave to me. That being said, I'd rather ask for the number from the owner themself. That's just my personal method of opertation. I'm not saying it's better or worse, just what I do.
Ryan J. Schnabel