First Deal.. What Do You Think?
I found a guy facing forclosure that is still in complete denial. He has a 231K 1st and an 18K second. He is five months in default, and the house is going into foreclosure in two weeks. He isn't going to put it on the market as it seems. His credit score is 500, so banks will not touch him. His payments are 1,600 a month and he owes about 9K back.
What is a good strategy for this one?
I was thinking about trying to get the title in exchange for making the loan current and saving him from foreclosure. The house is worth around 300K now, and selling it shouldn't be a problem in this area. Maybe I would split the profits with him? I would be interested to know how others would react to this potential deal.
-Tekgnos
You found a potential deal but you didn't find a modivated seller. You aren't going to put anything together until you can get him wanting your help.
Sit down and talk to the homeowner and find out about his life. Everyone has a button to push and you should find it and push it! Don't piss him off but try to get him to come to reality.
GOOD LUCK
Conti & Finkle had some really good comments on that topic. You're not going to be able to tell the homeowner anything! Doesn't matter what you say or how much sense you make - you're wrong. You've got to get the homeowner to admit the problem and come up with the solution. Start by reversing what you would normally say by utilizing negative phrasing. i.e. You said that his credit score was weak so refinancing is out of the question right? So you would say to him, "You mentioned that you thought about just refinacing as a way out. The mortgage brokers you talked with probably have already got that process going, right? More than likely he's going to respond by telling you how bad his credit is and that no finance company will touch him. There you go, he has put that on the table himself instead of you insulting him by telling him his credit is bad and he'll never get refinanced. The negative phrasing technique can be used very successfully to get the homeowner to bring touchy subjects to the table and admit the negatives.
Secondly, you've got to find out what outcome he as the homeowner wants to see happen. Obviously, most people in his situation want the problem to go away and continue to live in the home. Right. Negative phrasing can get him to say for himself that's not going to be possible. When this is achieved, and you find out what he wants to happen that is reasonable, you will be in a better position to negotiate a solution. Even then you will have to be careful with the hardcore denialist! You must give him the "hints" of a possible solution and let him come up with the idea. Suck it up and let him have all the credit for the "great ideas" he has come up with. Put the deal together.
Note:You're going to have make sure you have established a good rapport with the homeowner to speak with him in the previously stated manner. Good luck!
Great advice. I do have a strong rapport with the owner, as I came and visited him in person rather than on the phone, like some of my competition. At this point though, I think that it is just other mortgage companies that want to see if he can refinance.
I like the negative phrasing method for selling, I will put that to work!
-TekGnos