Pre-foreclosures/foreclosures
I am very new to creative real estate investing and, like most newbies, have been busy conducting extensive research into this area. What is the best way to INITIATE contact with a prospective client (defaulted home-owner) or bank? Are banks really more interested in discounting a mortgage rather than assuming ownership of the property? 
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KEA:
How doing once again my friend?
Banks aren't interested in 'Selling Foreclosures' ---Just raking in the dough from sales, Financing these and refinancing others!
Discounting notes is a DRAG for Most Banks--this is why they Federally or Publicly INSURE against the loss---Trade the Notes on the open Mkt.--- then use the cash they receive to FUND(read LEND) on new deals!
This greases their wheels and keeps the profits flowing. It's almost a never lose situation for Lenders/Banks---They usually will loan only 80-90% Loan to Value(LTV)!
I personally deal with anyone who has a property FOR SALE (read: PROBLEM KEEPING IT)!
Once I identify their TRUE NEED I go for the Juglar(Words--taken RIGHT OUTTA THEIR MOUTH)!
I then turn their statements into My MAGIC FORMULA for SELLING their HOME TO ME B/C they know I LISTENED TO THEM!
--Therefore I TRULY UNDERSTAND THEIR NEEDS! And I KNOW EXACTLY How
PAINFUL it is for them not having sold it yet!!!
In short to answer which one to deal with:
(Bank REOs or Homeowners)
I like the person to person challenge and find it more fufilling to help People! Bank REO Mgr.s usually act like they're GOD or something and most have some agenda whereby they'll either USE YOU(beware) or IGNORE YOU (be PERSISTENT)!
Either way you should develop and exit strategy for negotiating REAL DEALS and not overlook the possibility of FUTURE RELATIONS with these Lender/Bankers!
Hope this helps!
DERRICK ALI
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Derrick,
Thanks for the great insight. Does your e-book cover the technique of using Equity holding Land Trusts for assisting distressed homeowners?
I am extremely interested in this kind of creative investment.
On 2002-10-21 17:54, DerrickAli wrote:
KEA:
How doing once again my friend?
Banks aren't interested in 'Selling Foreclosures' ---Just raking in the dough from sales, Financing these and refinancing others!
Discounting notes is a DRAG for Most Banks--this is why they Federally or Publicly INSURE against the loss---Trade the Notes on the open Mkt.--- then use the cash they receive to FUND(read LEND) on new deals!
This greases their wheels and keeps the profits flowing. It's almost a never lose situation for Lenders/Banks---They usually will loan only 80-90% Loan to Value(LTV)!
I personally deal with anyone who has a property FOR SALE (read: PROBLEM KEEPING IT)!
Once I identify their TRUE NEED I go for the Juglar(Words--taken RIGHT OUTTA THEIR MOUTH)!
I then turn their statements into My MAGIC FORMULA for SELLING their HOME TO ME B/C they know I LISTENED TO THEM!
--Therefore I TRULY UNDERSTAND THEIR NEEDS! And I KNOW EXACTLY How
PAINFUL it is for them not having sold it yet!!!
In short to answer which one to deal with:
(Bank REOs or Homeowners)
I like the person to person challenge and find it more fufilling to help People! Bank REO Mgr.s usually act like they're GOD or something and most have some agenda whereby they'll either USE YOU(beware) or IGNORE YOU (be PERSISTENT)!
Either way you should develop and exit strategy for negotiating REAL DEALS and not overlook the possibility of FUTURE RELATIONS with these Lender/Bankers!
Hope this helps!
DERRICK ALI
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KEA:
You Betcha my New eBook covers everything you need to get Motivated Owners/Sellers to Call YOU!
And What to Say when they call...How to Secure the Deal...and How to Get someonelse to Pay 100% of the Expenses +get you a Positive Monthly Cashflow with ZERO Landlord Headaches!!!---Using the Equity Holding Trust(tm) or a PACTrust(tm)
Best of you can get it right here on TCI!
Glad I could help you KEA!
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