Finding People In Foreclosure
There are various ways one can go about finding pre-foreclosure properties. You can look through the Daily Commerce report for notices of defaults, REO's, probates, and trustee sales, or sign up for a service that will mail you the information on properties as they go to default. There are some companies out there that will send you the information to your computer. The way I have found to be most effective is to find a company which you can go to their website and browse various properties in foreclosure.
Different foreclosure listing services may focus on different areas, so it is important to find one that accompanies the different counties you will be searching for foreclosures in. There usually is a monthly fee, which is based upon how many different counties you request information for. But once you are signed up, you are ready to go. For my counties, I use countyrecordsearch.com. You can simply do a 'Google' search for a foreclosure listing service in your area. Be careful as some companies are merely listing MLS, HUD, and VA properties. You want the current up to date Notice of Defaults and Trustee Sale information for your area.
You should be able to browse the listings whenever you want using your own PC if you choose. This saves much time compared to actually going to the County Recorder's office to request information on pre-foreclosures. Now you have an advantage over those who choose not to use a foreclosure listing service, because you will have all the information you need through just a few clicks.
From that point, you will have the owner's contact information. If no phone number is listed there, see if they are listed in the phone directory. I use reversephonedirectory.com and merlindata.com to find phone numbers.
Once I have a phone number, I can call up the owner and help them out of their situation. What I have found that also works well is to send them a postcard offering them a Free Report by directing them to a website where they can download it. In order to get the Free Report, they have to give up their contact information which is routed to me by email and then I can contact them directly . What I have also found to be true is not everyone wants to talk to a stranger over the kitchen table. However everyone is online know, so offerring a Free Report Online can be beneficial.
Before I call, I always fully analyze the foreclosure information, that way I can get right to the point when offering them a solution to their problem. Remember, this is a numbers game, the more offers you make the more foreclosures you are going to buy. Another thing you can do is find a sub-prime lender that you can work with to help these people out of their situation as well. One thing I also offer to do is refer them to my sub-prime lender to get their house refinanced. If for some reason, which happens frequently, they cannot qualify to do a refinance on their property, guess who is in the drivers seat to purchase their property? The key is getting out there and testing what works in your area.
Jeff says it well and is of course a big sucess. I use a slightly different approach.
First I select with great care the area I wish to be the most active in. I sometimes have the area fully researched with almost every property owner and the description of their property displayed in booklet form. I then also buy a Foreclosure service which I can dial into the Web site and pull all of the Notices of Default and the Trustee Sale notices. I then send out a series of cards five in number. The first one hits about three days after Notice of Default and keep going out at intervals until the Trustee Sale is posted at which point I usualy run and visit the property.
When I hit the property I am prepared to do anything that is necessary to save the property. I have a Sub Prime Lender standing by and I have private lenders standing by also. I am prepared to buy their property. Cure the foreclosure. If necessary modify and add onto the property if that is what is necessary to make a profit on the transaction.
Some properties are impossible but can become a really attractive property by the addition of a bathroom, bedroom, guest house or unit. Whatever.
I try to be all things to all people. By working a selected area close to where I live I can fullfill any requirement.
This is really King of the Hill, For older folks I can do reverse mortgages. For those all the way down the drain, I can give a Life Estate and then hold title to the property. It goes on and on.
To properly function in this area you really have to be prepared to do almost anything that the situation requires.
It is a great challenge and a hell of a lot of fun.
I like it.
Cheers Lucius