People Are Crazy!!
I have noticed that a few of the homeowners I have been visiting are kind enough to tell me they have thier impending foreclosure "already taken care of" while they slam the door in my face and yell at me words that would make the saltiest Marine blush. Then, oddly enough, I find the same house being sold at the Sherrif Sale. Is this unusual or do I live in my own special little world? And, any suggestions to get past this obvious lie?
Good Day to you:
Most homeowners that that situation are in denial and are embarrased to say the least. Some may have been been burned or led down the rosey path. Just keep trying.
Good Luck and make $$$
Tom
Well, it is their prerogative, after all. They owe you nothing, not even their time.
Perhaps they’re in denial, or feel humiliated, or view you as a vulture, or would sooner go down with the ship than allow anyone to profit from their situation. It all depends upon how they view their situation, the world around them, and the actions they’ve decided to take or not to take.
Maybe you were just the one investor too many to knock on the door today.
We’ve all had low moments. Empathize, nod your head, move on.
Quinn
i was at a foreclosure auction today and the owner of the house was there. the mortage amt was 35,000 and it sold for 85,000, so after the court fees and bank fees the owner gets whats left over? So I guess they would rather take their chance and get money from the auction as opposed from an investor who gives them much less.What are your thoughts?
If it is sold at the auction, the homeowner gets nothing. The fact that it is being auctioned off says the homeowner has already lost the prop. The only parties to get it at that point would either be the bank or the bidder.
Quote:
On 2004-04-26 21:13, janeta wrote:
i was at a foreclosure auction today and the owner of the house was there. the mortage amt was 35,000 and it sold for 85,000, so after the court fees and bank fees the owner gets whats left over? So I guess they would rather take their chance and get money from the auction as opposed from an investor who gives them much less.What are your thoughts?
I thought the owner did get the overage in NY (if they went thru the process)????
Is it the same in every state?
As I am sure you have all noticed, we are in a "Spike".If you graph it it looks like a giant sword sticking straight up to the sky. On these occasions you change your methods.
I am sure that you highly qualified persons do talk to the various active Trustees who conduct these sales. A lunch now and then or a drink after work is an excellent investment. You hear stories and you get confirmation of events which are responsive to the present Spike.
For example, a fun thing right now is to check every property in foreclosure and see if there is not a second hanging somewhere above the foreclosing mortgage. Buy that at discount say ten cents on the dollar. Attend the sale, qualify in and bid the sale secure in the knowledge that at its end the unpaid balance of that second will be rewarded to you. You are bidding with ten cent dollars and that is fun.
Of course you judge the pace of the sale and you read the faces and twitches of the other bidders and when they begin to falter, roll their eyes, finger their notes quiver in their extremities, you sigh, and stop bidding. After the sale you may if you wish inform the Trustee where you want your check to be sent. I having spent much time with these denzens
of the dark prefer to folow them back to their offices and make arrangement for imediate payment therewith. A small modification to compensate for the presance of a Spike.
Cheers Lucius
At a foreclosure sale. The demand of the note holder in foreclosure is first satisfied. It usualy includes all expenses of sale. They may of course on instruction from the lender bid short.
any overages go to the next lien or mortgage that is junior to the foreclosing mortgage. After that if there are no more liens the balance is awarded to the property owner who is being foreclosed on.
Yes yes, even in Georgia, Now this state in particular was founded by a guy by the name of Ogelthorpe, most of his settlers came from Debtors Prison in London. Check the first law ever passed by its first assembly. "No person shall be imprisoned for debt" Go on past that little goody, talk about changing the laws they did it. The foreclosure of property was also addressed. You pay off the liens and judgements recorded against the property and at the end the old owner sliding down the drain gets the balance.
Please, on these things were these United States of America, founded. Religious Fanatics in the North, Debtors in the South and Small Farmers wanting to be Gentry in the Deep South. Of course there was Simon Girty on the border. This is the king of Terrorism. We got it all.
Cheers Lucius
Leatherneck,
As a fellow Marine, I feel your pain. Maybe it is our direct (harsh) demeanor that startles people.
I am so timid and kind when I knock on the door of a foreclosure and that usually does the trick.
I, too, hear the same story EVERY TIME, about how they are going to work out their problems. And, just like you said, on the deals I don't do, they usually end up at auction.
Funny business we're in...but a sensitive one.
Good luck.
Hey,
A common question on this site is "what is the best book for me to read?". The answer is always "Fat Dad, Thin Dad" or some other Guru book, but the right answer is a book on Human Relations. Figure out how people react to different situations and you will be a millionaire in a year or two.
There is a famous test done by some researchers, were two people who do NOT know each other, enter a room. The researcher in the room said to the first person "I have $10. I will give you as much of the $10 as you want, but I will give double that amount to the other person". 75% of the people said they would take $0. That means the desire for personal reward, was overshadowed by seeing someone else get more.
People are crazy.
Yes, Leatherneck, people are crazy. This can't be the first time you have noticed this.
. You must convince them that you are there to help that you are a professional and that denial is really not necessary. That the monster in the closet can be allowed to come out into the light and that there he can be dealt with and will turn out not to be so monsterous after all. .
The ability of the human brain to deny reality in the interest of comfort and peace over fear is astonishing. Somehow those facing semi-self created disasters (like foreclosure) are most able to do this. Do you know the one about the fellow who fell off the top of the Empire State building? On the way down people kept hearing him say, "ok so far".
Unfortunately confrontation seldom works with these folks. Rather you must practice deception (remember, almost any deception you practice will pale by comparison to the deception they have convinced themselves, "It will all work out ok in the end"
I am glad that I posted. You guys are giving me better insight on how to approach these people. It seems that these people are just dillusional as to they will be miraculously saved by someone or something. I hate to be deceptive to some of these people, but when I knock on the door and tell them "I saw in the Legal News your house is in foreclosure, maybe I can help", People tend to react as if I have come to kick thier baby and unplug thier cable. Thanks guys!
BTW sgtphilko, Semper Fi.
All this talk about denial reminds me of a joke that would be appropriate here
, so he keeps it on the market for 6 months, then sells it at a discount anyway. Who lost out here?[ Edited by glieberman on Date 04/27/2004 ]
(stop me if you've heard this one ):
A farmer is in Iowa during a flood. The river is overflowing, with water surrounding the farmer's home up to his front porch. As he is standing there, a boat comes up, The man in the boat says " jump in I'll take you to safety".
The farmer crosses his arms and says stubbornly, "Nope, I put my trust in God"
The boat goes away. The water rises to the second floor. Another boat comes up, the man says to the farmer who is now in the second story window, "Jump in, I'll save you"
The farmer again says, "Nope, I put my trust in God"
The boat goes away. Now the water is up to the roof. As The farmer stands on the roof, a helicopter comes over, and drops a ladder. The pilot yells down to the farmer "I'll save you, climb the ladder."
The farmer says "Nope, I put my trust in God"
The helicopter goes away. The water continues to rise and sweeps the farmer off the roof.
He drowns.
The farmer goes to heaven. God sees him and says "What are you doing here?"
The farmer says "I put my trust in you and you let me down."
God says, "What do you mean, let you down? I sent you two boats and a helicopter"!!
Bottom line: Some people are in denial. But even some of the ones who AREN'T in denial don't recognize solutions in other forms.
Some investors are like that. Who hasn't come across someone with a property losing $1K every month, but the seller refuses to negotiate $2K on the sales price out of principle ("It's worth more than that!"
OK, here's the deal...
Knock knock.... "Hi Mr. Green (you already know his name so just assume it's him) you've probably already got your foreclosure situation handled, so I just wanted to leave my card as a backup for you, and by the way, I have a way to stop foreclosure in 24 hours or less."
Hand him the card and turn to walk away.
You get one guess as to what's gonna happen.
"Uh.... well, uh... wait a minuite... uh... how can you do that???"
You: "Well, do you have a minuite? We can sit down and I'll show you how it works..."
The objective here is to get you inside the house and sitting down at the table with this guy, instead of getting the door slammed in your face.
And you're off and running...
Where you go from here is up to you, but you CAN stop his foreclosure by hauling him down to your local federal bldg. and having him file for a chapter 13 BK, at least in California. I can't speak for other states.
When I was a small child during the Crash of 1929, my Grandfather was defending a nice old man who went by the name of 'Kid Yellow Gloves," He lived in the guest house during the period of time it took my grandfather to get him off and to collect the damages awarded him.
Kid Yellow Gloves was the con-man to end all con-man. If you read O'Henry book The Gentle Grafter, you will know him.
My Grandfather said, "Lucius, spend the summer with this man. You will learn enough from him to enable you to coast through life secure in the fact that you have heard it all before and what is most important you will recognize the con as some one tries to lay a trip on you.
Rule: On the Con Direct. Never Help People, you are there to make them money. To raise them to hights of momentory glory such as they have never known before.
Rule: The signing of legal documents must be always done in the correct surroundings. A bank is handy. The Notary must be pre briefed on all occasions and compensated for her activities above and beyond the standard fee.
Rule: Evaluate the marriage relationships of your Mark. One is always the leader, one is always waiting for the leader to speak, move or indicate a negative or a positive. Address yourself to the leader. Always. Remember they have assumed these rules by choice and habit. It is not your right to interfear or correct. If you attempt you will loose.
Rule: When a weapon is presented look not into the eyes of he that holds it. Look at the weapon. Complement him on it. Identify it as an instrument of great value and that value can be obtained at once as you know a person who collects such weapons. Reach out your hand with eyes directed to the weapon keep a stream of remarks going about its value. He will hand it to you. Examine it with great care. Be sure it is loaded and cocked. Then Shoot Him!
This early advice his colored my life. Utilizing this method, I have walked out the front door of a Prisoner of War camp. Stalag 2. Hated the food terrible conversation. Made purchase of real estate way below value and turned the seller into future business associates allowing them to assume their personal MOS's at which they work best.
I recommend it to you all. Besides its fun.
Lucius 8-)
bigurrito responded along the same lines that I was thinking of...there is a fairly new book out 2003 or 2004 making big money investing in foreclosures i think its called( by david finkel and peter conti), but whats good about it is that it has negotiation techniques similar to the one above. I think maybe you could go to your local book store and check it out, not necessarily buy it if you don't want to but look through it at the dialogue for negotiating and getting "your foot in the door" so to speak.[ Edited by QuietStorm on Date 04/29/2004 ]
BIG BURRITO!!!!
That is Golden!!!! That is Golden!!!!
How has that worked for you? I can see how that line can work wonders up here in the Northern Cali area...I'm going to give it a go this weekend!....Thanks a Million!!!! Literally!
Thanks 8-) 8-)
Yep, people are crazy. We just bought a home at auction. Not one other bidder there. Not one. The home is worth $270,000. We paid - no joke - $22,000 for it. $22,000. I can't believe it. Crazy that no one else was there, but even crazier that the homeowner wouldn't have done anything and everything to take care of this before the auction, with so much equity in it. We, of course, have to wait for the 75-day redemption period to end before really calling it ours, but I am just so amazed.
BINGO!!! As oppose to getting off of the ship knowing that it is sinking, why not go down with it? That mentality with home owners that they can ice skate up a mountain after a situation has gone that far out of control baffles me. bigburrito, your suggestion sounds solid. I will try it next time I go out.